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EPFO Dispute Resolution Scheme: EPFO has launched a new one-time dispute resolution initiative VISHWAS, 2026, which aims to amicably settle disputes to levy of compensation under Section 14B of the Employees’ Provident Fund and Miscellaneous Provisions Act, 1952 and Section 128 of the Social Security Code, 2020. This information was given by the Ministry of Labor and Employment on Friday.

The scheme has been notified vide GSR 525(E) dated 29 June 2026 as part of the EPF Scheme, 2026 and has become effective from 29 June 2026. It will remain in operation for a period of six months from the date of notification.

These 4 types of pending cases will come under the scope of the scheme

VISHWAS, 2026 Scheme has been launched with the objective of promoting voluntary compliance, reducing litigation and enabling expeditious resolution of long pending disputes to penalty/compensation while protecting the interests of employees. The scheme provides an opportunity to employers to settle eligible cases through a transparent, fully digital and time bound process.

The scheme covers four broad categories of cases, the first category of which includes cases where compensation orders have been challenged before a judicial forum. The second involves final penalty orders where recovery is pending or has been made only partially, including RRC cases.

At the same time, in the third category, there are such cases in which notices have been issued but the final orders regarding the fine have not been passed yet. And the fourth category includes cases where penalty/compensation notices have not yet been issued.

It is necessary to pay interest for the application

The ministry said that to avail the benefits of this scheme, employers must ensure that the entire interest payable under Section 7Q of the EPF and MP Act, 1952 or Section 127 of the Social Security Code, 2020 has been paid before submitting the application. Applicants will also have to give an undertaking that no further appeal will be made in respect of the dispute settled under the scheme.

Some cases were excluded from the scheme

The scheme contains detailed provisions relating to adjustment of amount already paid as damages or penalty, regulation of statutory pre-deposit made for filing appeals and disposal of pending cases in a fair and transparent manner. However, establishments where the penalty has been fully recovered, cases involving fraud, embezzlement or willful falsification of records and cases where the applicable statutory interest has not been fully deposited are excluded from the scheme.

The ministry further said that applications under the Trust, 2026 scheme will be submitted online through the EPFO ​​Employer Portal using digital signature certificate or e-signature. The process is designed to ensure ease of application filing, online verification, digital processing and issuance of settlement orders within the stipulated time frame.