New EPFO settlement scheme offers employers a one-time path to clear penalty dues
The EPFO has launched the 'VISHWAS 2026' scheme to help employers settle long-pending penalty and damage disputes through a simplified process.Summary
The Employees' Provident Fund Organisation (EPFO) has introduced the 'VISHWAS 2026' scheme, a six-month initiative designed to resolve long-standing disputes regarding damages and penalties. Effective from June 29, 2026, the scheme aims to promote voluntary compliance, reduce litigation, and expedite the resolution of cases involving Section 14B of the Employees' Provident Funds and Miscellaneous Provisions Act, 1952, and Section 128 of the Code on Social Security, 2020.
The scheme covers various categories, including cases pending in judicial forums, ongoing recovery processes, and matters where notices have or have not yet been issued. To incentivize settlement, EPFO will recalculate damages and penalties for defaults occurring before June 14, 2024, using reduced monthly rates ranging from 0.25% to 1% depending on the duration of the default.
To participate, employers must pay all applicable interest and provide an undertaking that they will not pursue further appeals. Applications must be submitted online via the EPFO Employer Portal using a Digital Signature Certificate or e-Sign. Dedicated VISHWAS cells will be established across various office levels to facilitate the implementation and monitoring of this initiative.
(Source：Edex Live)