Centre launches scheme for employers to settle provident fund cases
The Employees’ Provident Fund Organisation (EPFO) has launched “Vishwas 2026”, a one-time dispute resolution initiative, effective from June 29. In a statement here on Friday
The Employees’ Provident Fund Organisation (EPFO) has launched “Vishwas 2026”, a one-time dispute resolution initiative, effective from June 29. In a statement here on Friday (July 17, 2026), the Union Labour Ministry said the scheme would facilitate amicable settlement of disputes relating to levy of damages or penalty on employers 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 provides employers with an opportunity to settle eligible cases through a transparent, fully digital and time-bound process,” the statement added. The government had notified the scheme as part of the EPF Scheme, 2026. “It will remain operational for a period of six months from the date of notification,” the release added. The Ministry said the objective of the scheme was to promote voluntary compliance, reduce litigation, and enable speedy resolution of long-pending disputes relating to penalty/damages while safeguarding the interests of employees.
It covers cases where orders for penalty/damages are under challenge before judicial forum, final damages/penalty orders where recovery is pending or only partly made, including Recovery Certificate (RRC) cases, cases where notices have been issued but final orders for damages/penalty are yet to be passed and cases where notices for penalty/damages are yet to be issued. Under the scheme, damages or penalty for defaults pertaining to the period prior to June 14, 2024 would be recalculated at 0.25% per month for defaults up to two months, 0.50% per month for defaults from two to less than four months, and 1% per month for defaults exceeding four months.
“These concessional rates are intended to encourage employers to resolve pending disputes expeditiously,” the government added.
The BriefWire