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The Labour Ministry has introduced the VISHWAS 2026 Scheme to help employers resolve eligible EPF penalty and damages disputes through a fully digital, time-bound process while reducing long-pending litigation.

In a major step towards simplifying provident fund compliance, the Ministry of Labour and Employment has launched the EPFO VISHWAS Scheme 2026, a one-time dispute resolution initiative aimed at resolving long-pending EPF-related disputes involving penalties and damages.

The scheme is designed to encourage voluntary compliance, reduce litigation, and provide employers with a transparent and digital mechanism for settling eligible cases. It also aims to speed up the resolution of disputes that may have delayed provident fund-related processes.

The VISHWAS Scheme 2026 is a one-time dispute resolution programme introduced by the Employees' Provident Fund Organisation (EPFO).

According to the Labour Ministry, the scheme seeks to:

• Reduce long-pending EPF litigation.
• Promote voluntary compliance among employers.
• Offer a transparent and time-bound settlement process.
• Resolve disputes related to EPF penalties and damages.

The scheme became effective from June 29, 2026, and will remain open for six months from the date of notification.

The scheme applies to four broad categories of disputes:

Disputes where employers have already challenged EPFO orders related to penalties or damages before judicial forums.

Cases where recovery of penalties or damages has not yet been completed, including matters involving Recovery Certificate (RRC) proceedings.

Cases in which show-cause notices have already been issued but the final penalty or damages order is still awaited.

Eligible matters where notices relating to penalties or damages are yet to be issued.

EPFO has clarified that certain categories of cases are excluded from the scheme.

These include:

• Cases where the entire penalty or damages amount has already been recovered.
• Matters involving fraud, fund misappropriation, or deliberate manipulation of records.
• Cases where the mandatory statutory interest remains unpaid.

Eligible employers can apply through the official EPFO Employer Portal by following these steps:

• Log in to the Employer Portal.
• Submit the application online.
• Authenticate the application using a Digital Signature Certificate (DSC) or e-Sign.
• Provide the required declaration confirming that, after settlement under the scheme, no further appeal relating to the same dispute will be pursued.

The entire application process is intended to be paperless and fully digital.

Although the scheme primarily targets employer-related disputes, employees may also benefit indirectly.

Faster dispute resolution could help:

• Clear long-pending provident fund-related matters.
• Reduce delays linked to disputed employer liabilities.
• Improve overall compliance with EPF regulations.

However, the scheme does not alter employees' statutory EPF benefits or contribution rules.

To ensure smooth implementation, EPFO has instructed its zonal, regional, and district offices to establish dedicated VISHWAS Cells.

These units will be responsible for:

• Reviewing applications.
• Processing eligible cases.
• Ensuring timely disposal of disputes.
• Implementing the scheme uniformly across regions.

• One-time dispute resolution initiative.
• Effective from June 29, 2026.
• Application window remains open for six months.
• Covers eligible penalty and damages disputes.
• Fully digital application process.
• Aims to reduce litigation and promote voluntary compliance.
• Dedicated VISHWAS Cells to monitor implementation.

The EPFO VISHWAS Scheme 2026 is expected to provide a structured mechanism for resolving eligible provident fund disputes that have remained pending for years. By offering a digital and time-bound settlement process, the initiative seeks to reduce legal disputes, improve compliance, and streamline EPF administration while safeguarding employees' interests.

Disclaimer: The scheme is subject to the official EPFO notification and applicable eligibility conditions. Employers should refer to the latest EPFO guidelines before submitting applications.