Labour Minister Mansukh Mandaviya Launches Vishwas Scheme to Curb EPF Litigation

Labour Minister Mansukh Mandaviya Launches Vishwas Scheme to Curb EPF Litigation

Introduction

Union Minister for Labour and Employment, Dr. Mansukh Mandaviya, launched the Vishwas Scheme during the 238th meeting of the Central Board of Trustees (CBT) of the Employees’ Provident Fund (EPF) in New Delhi. The scheme is designed to reduce litigation and promote compliance through rationalised penal provisions under the Employees’ Provident Funds and Miscellaneous Provisions Act, 1952. Alongside this, the Minister also unveiled a series of digital governance initiatives to enhance efficiency and transparency within the Employees’ Provident Fund Organisation (EPFO).

I. Key Features of the Vishwas Scheme

1. Objective:
   • To curb litigation related to penal damages and promote voluntary compliance among employers.
   • To encourage settlement of pending cases through a structured, transparent mechanism.
2. Main Provisions:
   • Rationalisation of penal damages imposed on employers for delayed payments to the Provident Fund (PF).
   • Mechanism for conciliation and settlement of long-pending disputes between employers and EPFO.
   • Provision for reduced penalties for those who voluntarily disclose and rectify defaults.
3. Expected Outcomes:
   • Decongestion of litigation at tribunals and courts.
   • Improved employer–employee relations through cooperative compliance.
   • Strengthened fiscal health and governance of the EPF system.

II. Other Initiatives Launched

1. Re-engineered Return Filing Module:
   • Streamlines employer filings with enhanced automation and error-checking features.
2. User Management Module:
   • Introduces role-based access for secure, efficient online operations.
3. Upgraded e-Office and SPARROW System:
   • Integrates digital workflows for administrative efficiency.
   • Improves Annual Performance Appraisal Report (APAR) management and ensures faster review cycles.

These steps align with the government’s vision of a “Digital EPFO”, reducing paperwork and ensuring timely service delivery to members.

III. Board Decisions

• The Central Board of Trustees approved simplified and liberalised norms for partial withdrawals from the Provident Fund.
• The revision aims to enhance member convenience and retirement security, allowing withdrawals for urgent needs such as medical treatment, housing, and education with fewer procedural hurdles.

IV. Policy Significance

1. Administrative Reform:
   • The Vishwas Scheme represents a shift from punitive to reform-oriented governance in labour administration.
   • It promotes trust-based compliance, aligning with the government’s “Minimum Government, Maximum Governance” approach.
2. Ease of Doing Business:
   • Reducing litigation and simplifying compliance will lower transaction costs for enterprises, particularly MSMEs.
   • Encourages formalisation of labour and contributes to improved Ease of Doing Business rankings.
3. Worker Welfare and Social Security:
   • Ensures timely crediting of contributions to workers’ provident fund accounts.
   • Strengthens the overall social security architecture by improving fund liquidity and coverage.
4. Digital Transformation:
   • The integration of digital modules reflects India’s broader movement towards e-governance and paperless administration.
   • Enhances transparency, accountability, and service delivery efficiency within EPFO operations.

V. Analytical Perspective

The Vishwas Scheme represents a pragmatic reform in India’s labour governance architecture, focusing on conciliation rather than confrontation. By introducing rationalised penal provisions, the scheme aims to strike a balance between ensuring accountability and reducing adversarial litigation that often burdens both employers and the judicial system.Simultaneously, the push for digital reforms underlines the government’s broader commitment to administrative efficiency and data-driven governance. The combination of simplified withdrawal norms, technology-enabled transparency, and dispute resolution mechanisms signals a decisive move toward a modern, inclusive, and responsive social security ecosystem.

Conclusion

The launch of the Vishwas Scheme marks a significant policy intervention in strengthening labour compliance, social security governance, and digital transformation within the EPFO framework. By reducing litigation and fostering trust-based engagement, the initiative reinforces India’s commitment to building a fair, transparent, and worker-centric social security system, aligned with the goals of inclusive growth and economic formalisation.

Updated - October 13, 2025 9:15 PM | News On Air