New Delhi: To clear long-pending cases related to damages and penal levies through an efficient digital framework, the Employees' Provident Fund Organisation (EPFO) has rolled out 'VISHWAS, 2026'. This one-time dispute settlement mechanism is designed to reduce ongoing litigation while encouraging voluntary statutory compliance.

The Ministry of Labour and Employment confirmed that the facility came into force on June 29, 2026, and will remain available for a six-month window. It addresses legal matters involving damages levied under Section 14B of the Employees' Provident Funds and Miscellaneous Provisions Act, 1952, along with penalties under Section 128 of the Code on Social Security, 2020.

"VISHWAS, 2026 has been introduced with the objective of promoting voluntary compliance, reducing litigation and enabling speedy resolution of long-pending disputes relating to penalty/damages while safeguarding the interests of employees."

Scope and concessional rates

The amnesty initiative spans four distinct categories of defaults.

1. Cases currently challenged before judicial or quasi-judicial forums.

2. Final orders where recovery is pending or partially completed (including Revenue Recovery Certificate cases).

3. Matters where notices have been dispatched but final assessment orders are pending.

4. Eligible defaults where formal show-cause notices have not yet been served.

To expedite settlements, the EPFO is offering recalculated, lower rates for defaults that occurred before June 14, 2024. The revised monthly damage slab charges are set at 0.25 per cent for delays up to two months, 0.50 per cent for delays between two and four months, and 1 per cent for defaults extending beyond four months.

Conditions and application process

Establishments seeking to utilise the settlement route must clear all outstanding statutory interest liabilities before submitting their applications online. In addition, employers must commit to withdrawing ongoing legal proceedings and undertake that no further appeals will be raised regarding the settled matter.

Submissions will be processed electronically via the official EPFO Employer Portal using an e-Sign or Digital Signature Certificate (DSC). Special VISHWAS cells have been formed at zonal, regional and district offices to assist applicants and ensure time-bound case disposal.

 

ANI