EPFO Launches “VISHWAS, 2026” for Amicable Settlement of Damages/Penalty/-Related Disputes

Key Highlights:

• The Employees’ Provident Fund Organisation (EPFO) launched VISHWAS, 2026, a one-time dispute resolution initiative.
• It aims to settle disputes related to damages/penalty under Section 14B of the Employees’ Provident Funds and Miscellaneous Provisions Act, 1952 and Section 128 of the Code on Social Security, 2020.
• The scheme was notified on June 29, 2026, and will remain operational for six months.
• It offers substantially reduced penalty rates for defaults prior to June 14, 2024, ranging from 0.25% to 1.00% per month.
• Applications are submitted online via the EPFO Employer Portal using Digital Signature Certificate (DSC) or e-Sign.

Detailed Insights:

• VISHWAS, 2026 promotes voluntary compliance, reduces litigation, and ensures speedy resolution of long-pending disputes.
• It covers cases under judicial challenge, final orders with pending recovery, and cases where notices are issued or yet to be issued.
• To avail benefits, employers must fully remit interest payable under Section 7Q of the EPF & MP Act, 1952 or Section 127 of the Code on Social Security, 2020.
• Exclusions include cases where penalties are fully recovered, involve fraud, or where statutory interest has not been fully deposited.
• EPFO has established dedicated VISHWAS Cells and issued operational guidelines for smooth implementation and timely disposal of applications.

Key Concepts Involved:

• Employees’ Provident Fund Organisation (EPFO): A statutory body under the Ministry of Labour & Employment, responsible for administering provident funds in India.
• Employees’ Provident Funds and Miscellaneous Provisions Act, 1952: The primary legislation governing provident funds, pension, and insurance schemes for employees in India.
• Code on Social Security, 2020: A comprehensive code that subsumes and amends laws relating to social security, including provident funds.
• Section 14B (EPF & MP Act, 1952): Deals with the power to recover damages from employers for defaults in payment of contributions.
• Digital Signature Certificate (DSC): A secure digital key issued by certifying authorities to validate the identity of the holder.