EPFO VISHWAS 2026: EPFO ​​launches ‘Vishwas Yojana’ regarding PF disputes, employers will get huge relaxation in penalty, know complete details – ..

New Delhi/Lucknow. The Employees’ Provident Fund Organization (EPFO) has announced a special One-Time Dispute Resolution Scheme, giving a huge business relief to employers and companies across the country. The name of this ambitious scheme launched under the aegis of the Ministry of Labor and Employment is ‘VISHWAS 2026’ (Dispute to Trust Scheme) has been put in place. This scheme has been brought mainly keeping in mind those employers whose cases of huge penalties or damages due to delay in EPF contribution are pending for years in various courts or internal forums of EPFO. This special relief scheme has officially started from June 29 and will remain in effect for the next six months. Within this stipulated period, eligible employers will be able to settle their cases completely through digital medium.

All these pending and new cases will get direct benefit of ‘Vishvas’

According to the guidelines issued by EPFO, the scope of VISHWAS 2026 scheme has been kept quite wide so that more and more businessmen can avail its benefits. The following matters will be covered under this:

• Judicial Matters: In cases where the employers have challenged the order of fine or compensation imposed by the department in the honorable courts, tribunal or any other judicial forum.

• Incomplete Recovery: Cases where the final order has been issued but the recovery of penalty has not yet been completed by EPFO ​​or only partial recovery has been made.

• Recovery Certificate (RRC): In cases where recovery certificate has been issued by the department.

• Under-process and new cases: Those disputes in which the employers have received notice but the final decision is yet to come, or in which formal notice has not been issued yet, they will also be able to apply subject to the prescribed conditions.

Bumper cut in fine rates, penalties will be re-fixed at very low rates

The most attractive aspect of this scheme is that EPFO ​​has significantly relaxed the penalty calculation process to reduce the financial burden of employers. According to the department, Any type of financial default committed before June 14, 2024 (Default) The amount of penalty and damages will be recalculated at highly concessional rates in cases involving:

• On delay up to 2 months: Compensation at the rate of only 0.25% per month.

• On delay of 2 to 4 months: Penalty only at the rate of 0.50% per month.

• On delay of more than 4 months: Penalty will be fixed at a maximum rate of 1% per month.

  The government believes that due to these concessional rates, companies will come forward voluntarily, due to which old disputes will be resolved in a jiffy and the number of corporate lawsuits will come down drastically.

To avail the benefits of the scheme, employers will have to fulfill these 2 conditions

There are two main statutory formalities that employers will be required to complete before applying for closure of their cases under the VISHWAS 2026 scheme:

1. Depositing full interest: Employers must first ensure that the accumulated interest on the basic contribution payable under the concerned Employees Provident Fund Scheme is fully deposited in the EPFO ​​account.

2. Declaration of Withdrawal of Appeal: Employers must submit a written and official undertaking along with the application form. It should be clearly written in it that once the dispute is finally settled under this scheme, the employer will not file any appeal or petition again in any civil court, high court or other legal forum in future.

Digital process will improve the fortunes of both employers and EPFO

Labor law experts in the market believe that this visionary plan will relieve companies from years of mental and financial stress, allowing them to focus on their core business. On the other hand, EPFO ​​will also get freedom from huge administrative expenses and court cases, which will enable faster disposal of pending cases. Since this entire dispute resolution process has been kept 100% paperless and digital (Online Portal), there will be no scope for corruption at any level and there will be huge saving of time along with transparency. Overall, VISHWAS 2026 is being considered as a great ‘win-win’ initiative for both the Indian industry and the regulatory body.