EPFO’s ‘VISHWAS 2026’ scheme launched: Penalty disputes of employers will be resolved easily.

New Delhi, 17 July. Employees’ Provident Fund Organization (EPFO) has launched a one-time dispute settlement scheme named ‘VISHWAS 2026’ for amicable resolution of disputes related to penalty damages between employers and the organization. This scheme has come into effect from June 29, 2026 and will remain effective for six months.

The objective of the scheme is to promote voluntary compliance, reduce pendency of cases and speedy disposal of penalty cases. Applications can be made completely online on EPFO’s Employer Portal through Digital Signature (DSC) or e-Sign.

Which cases will get benefits?

• Four categories of cases are covered under the scheme
• Cases related to penalty/damage pending in courts.
• Cases in which final order of penalty has been issued but recovery has not been completed.
• In cases where notice has been issued but the final order has not come.
• In cases where notice has not been issued yet.

Penalty will be calculated at lower rates

New penalty rates will be applicable in cases of default before June 14, 2024

• Delay up to 2 months: 0.25% per month.
• From 2 to 4 months: 0.50% per month.
• More than 4 months: 1% per month.

This condition has to be fulfilled before application

To avail the benefits of the scheme, employers will first have to deposit the entire interest payable under Section 7Q. Besides, it will also have to be given in writing that no further appeal will be made regarding the dispute.

Which cases will not get benefits?

• In cases where full recovery of penalty has already been made.
• Cases involving fraud, embezzlement or willful manipulation of records.
• In which the statutory interest has not been paid in full.

EPFO has given instructions to create VISHWAS cells in all zonal, regional and district offices for effective implementation of the scheme, so that the applications can be disposed of in a timely manner.