The scheme will remain operational for a period of six months, starting from June 29, and will provide employers with an opportunity to settle eligible cases through a transparent, fully digital and time-bound process.
“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 or damages while safeguarding the interests of employees,” the ministry said in a statement issued on Friday.
The scheme covers cases where orders for penalty or damages are under challenge before judicial forum and final damages or penalty orders where recovery is pending or only partly made, including Recovery Certificate (RRC) cases
Further, cases where notices have been issued but final orders for damages or penalty are yet to be passed will also be covered under along with cases where notices for penalty and damages are yet to be issued.
Under VISHWAS, 2026, damages or penalty for defaults pertaining to the period prior to June 14 2024 shall be recalculated at substantially reduced rates, namely 0.25% per month for defaults up to two months, 0.50% per month for defaults from two to less than four months, and 1.00% per month for defaults exceeding four months.
“These concessional rates are intended to encourage employers to resolve pending disputes expeditiously,” the ministry said.According to the statement, in order to avail the benefits of the scheme, employers are required to ensure that the entire interest payable under the schemes, as applicable, has been fully remitted before submitting an application.
Applicants are also required to furnish an undertaking that no further appeal shall be pursued in respect of the dispute settled under the Scheme.
However, establishments where penalty or damages have already been fully recovered, cases involving fraud, misappropriation or deliberate falsification of records, and cases where the applicable statutory interest has not been fully deposited are excluded from the Vishwas Scheme.
To facilitate smooth implementation, EPFO has issued detailed operational guidelines to all its zonal, regional and district offices and is setting up dedicated VISHWAS cells to assist employers, process applications expeditiously and ensure timely disposal.