EPFO Launches VISHWAS 2026 - A One Time Dispute Resolution Initiative

• 18 Jul 2026
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The Employees’ Provident Fund Organisation (EPFO) has launched the VISHWAS 2026. It is a one time dispute resolution initiative that aims to amicably resolve disputes pertaining to levy of damages or penalty u/s 14B of Employees Provident Funds and Miscellaneous Provisions Act 1952 and u/s 128 of the Code on Social Security 2020. As per G.S.R. 525(E) dated 29.06.2026, the Scheme has been officially notified as part of EPF Scheme of 2026. 

It became effective from 29 June 2026 and will remain operational for six months, starting from date of notification. VISHWAS 2026 has been introduced to promote voluntary compliance, reduce litigation and allow for swift resolution of longstanding disputes pertaining to penalties / damages. At the same time, the scheme will ensure that it safeguards the interests of employees.

Categories of Cases under VISHWAS 2026

VISHWAS 2026 offers employers the opportunity to settle eligible cases through a transparent, fully digital and time-bound process. It covers the following four broad categories of cases:- 

• Cases where orders for penalties or damages are currently being challenged in a judicial forum. 

• Final penalty or damages orders for which recovery is pending or has only been partially completed, including Recovery Certificate (RRC) cases. 

• Cases where notices have been issued but final orders for penalties or damages have not yet been issued. 

• Cases where notices for penalties or damages haven’t been issued yet.

Recalculation of Damages/Penalties under VISHWAS

Under the VISHWAS scheme, the damages and penalties for defaults occurring before 14 June 2024 will be recalculated at significantly reduced rates. The new rates are as follows:-

• 0.25% / per month for defaults up to two months.

• 0.50% / per month for defaults from two to less than four months.

• 1.00% / per month for defaults exceeding four months.

The aim of the concessional rates is to encourage employers to resolve their outstanding disputes in a prompt manner. Employees who want to benefit from this scheme need to make sure that full interest payable u/s 7Q of Employees Provident Funds and Miscellaneous Provisions Act 1952 or u/s of Code on Social Security 2020 has been completely remitted prior to submitting their application. 

The applicants must provide an undertaking wherein they state that no further appeals will be pursued for disputes settled under VISHWAS. The scheme includes detailed provisions regarding adjustment of amounts already paid toward damages / penalties, regulation of statutory pre-deposits made for filing appeals and settlement of pending cases in a manner that is transparent as well as fair.

However, the scheme does not cover establishments where penalties / damages have already been fully recovered, cases involving fraud, misappropriation or deliberate falsification of records and cases where the applicable statutory interest has not been fully deposited. Applications under VISHWAS 2026 must be submitted online via EPFO Employer Portal using a Digital Signature Certificate or e-Sign. The process has been designed in such a way that it allows for ease of filing, online verification, digital processing and timely issuance of settlement orders. 

EPFO Releases Guidelines for VISHWAS

To ensure smooth implementation of VISHWAS 2026, the EPFO has released detailed operational guidelines to all its Zonal, Regional and District Offices. Dedicated VISHWAS Cells will be established in field offices to assist employers, process applications quickly and ensure timely resolution. Regular monitoring will take place at the Zonal and Head Office levels to ensure that the scheme is implemented in an effective manner.

The EPFO encourages all eligible employers to take full advantage of this one time opportunity to resolve any pending damages or penalty-related disputes, regularize compliance and contribute to a more efficient and litigation-free social security administration. 

Source: Press Information Bureau (PIB)