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EPFO rolls out dispute resolution scheme to settle long-pending cases
Jul-20-2026

The Employees’ Provident Fund Organisation (EPFO) has launched ‘VISHWAS, 2026’, a one-time dispute resolution scheme, with an aim to promote voluntary compliance, reduce litigation and enable speedy resolution of long-pending disputes relating to penalty/damages while safeguarding the interests of employees. The scheme provides employers with an opportunity to settle eligible cases through a transparent, fully digital and time-bound process.

The scheme has come into force with effect from June 29, 2026 and will remain operational for a period of six months. The scheme covers four broad categories of cases, including 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 /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.


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