The Employees’ Provident Fund Organisation (EPFO) has launched VISHWAS, 2026 to facilitate amicable settlement of disputes relating to levy of damages and penalty-related disputes. The Labour and Employment Ministry said that the scheme is a one-time dispute resolution and it provides employers with an opportunity to settle eligible cases through a transparent, fully digital and time-bound process. It will remain operational for a period of six months from the date of notification. The Ministry said that it has been introduced with the objective of promoting voluntary compliance, reducing litigation, and enabling speedy resolution of long-pending disputes relating to penalty and damages while safeguarding the interests of employees.
Under VISHWAS, 2026, damages and penalty for defaults pertaining to the period prior to 14th of June 2024 shall be recalculated at substantially reduced rates. The revised rates will be 0.25 per cent per month for defaults of up to two months, 0.50 per cent for defaults exceeding two months and one per cent per month for defaults exceeding four months. It contains detailed provisions regarding adjustment of amounts already paid towards damages or penalty, regulation of statutory pre-deposits made for filing appeals, and settlement of pending cases in a fair and transparent manner. Applications under VISHWAS, 2026 shall be submitted online through the EPFO Employer Portal using Digital Signature Certificate or e-Sign. To facilitate smooth implementation, EPFO has issued detailed operational guidelines to all its Zonal, Regional and District Offices. Dedicated VISHWAS Cells are being established across field offices to assist employers, process applications expeditiously and ensure timely disposal.
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