Digital ‘Vishwas 2026’ scheme reduces litigation over EPF compensation

In a bid to alleviate the growing number of legal battles surrounding EPF‑related penalties, the Employee Provident Fund Organisation unveiled the “Vishwas, 2026” programme. Announced by the Ministry of Labour and Employment, the scheme focuses on amicable resolution of disputes governed by Section 14B of the EPF Act, 1952 and Section 128 of the Social Security Code, 2020.

The initiative, published through GSR 525(E) on June 29, 2026, will stay in force for six months. It encourages employers to settle disputes voluntarily, thereby cutting down court caseloads and ensuring swift redress for workers.

The framework accommodates four types of cases: (a) orders challenged in court, (b) final penalty orders with dues either unpaid or partially recovered, including cases with Recovery Certificates, (c) instances where notice has been issued but the final order is pending, and (d) scenarios where no notice has yet been served.

Applicants must demonstrate that all interest due under Section 7Q of the EPF & MP Act or Section 127 of the Social Security Code has been cleared before submitting a request. They must also guarantee that the settlement will be final and not subject to appeal.

The programme provides mechanisms for adjusting amounts already paid, stipulates the handling of statutory pre‑deposit for any appeal, and promises impartial, time‑bound disposal of pending matters. However, organisations that have already recovered penalties in full, are involved in fraudulent activities, or have not deposited the full statutory interest are excluded.

All submissions are to be made through the EPFO Employer Portal using a Digital Signature Certificate or e‑signature. The digital workflow ensures easy filing, real‑time verification, automated processing and issuance of settlement orders within the defined deadline.