Published: 12 October 2025AIRGovernance
Vishwas Scheme Launched to Curb EPF Litigation; Penal Damages Rationalised
Union Labour Minister Mansukh Mandaviya launched the Vishwas Scheme on October 13, 2025, at the 238th Central Board of Trustees (EPF) meeting in New Delhi. The scheme aims to curb EPF litigation by rationalising penal damages under the Employees' Provident Funds and Miscellaneous Provisions Act.
Outstanding penal damages stood at ₹2,406 crore, with over 6,000 cases pending across High Courts, CGIT, and Supreme Court, plus 21,000 potential litigations on EPFO's e-proceedings portal. Under Vishwas, penal damages are reduced to a uniform 1% per month (0.25% for up to 2 months, 0.50% for up to 4 months). The scheme is valid for six months, extendable by another six months.
0Mains angle
Q: Examine how the Vishwas Scheme rationalises penal damages under the EPF & MP Act and its likely impact on pending litigation.
Answer (50 words):
Union Labour Minister Mansukh Mandaviya launched the Vishwas Scheme on October 13, 2025, at the 238th EPF Central Board meeting. With ₹2,406 crore outstanding damages and over 6,000 pending cases, it cuts penal damages to a uniform 1 percent per month. The six-month scheme is extendable by another six months.
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Linked questionMedium
With reference to the 'Vishwas Scheme' launched in October 2025, consider the following statements:
1. It was launched by the Ministry of Labour and Employment to curb EPF litigation.
2. Under the scheme, penal damages are reduced to a uniform 1% per month.
3. Outstanding penal damages stood at approximately ₹2,400 crore at the time of launch.
Which of the statements given above is/are correct?
Explanation · Correct answer CStatements 1 and 3 are correct, but statement 2 is not correct as worded. The Vishwas Scheme was launched by the Ministry of Labour and Employment at the 238th Central Board of Trustees (EPF) meeting to curb EPF litigation by rationalising penal damages. Per PIB, the rate is reduced to a flat 1% per month, EXCEPT for graded rates of 0.25% for default up to 2 months and 0.50% for default up to 4 months, so it is not a uniform 1%. As of May 2025, outstanding penal damages stood at about Rs.2,406 crore with over 6,000 cases pending across forums.
Frequently asked questions
Who launched the Vishwas Scheme and when?
Union Labour Minister Mansukh Mandaviya launched the Vishwas Scheme on October 13, 2025. It was launched at the 238th Central Board of Trustees (EPF) meeting in New Delhi.
What is the aim of the Vishwas Scheme?
The scheme aims to curb EPF litigation by rationalising penal damages under the Employees' Provident Funds and Miscellaneous Provisions Act.
What scale of EPF-related litigation and dues did the scheme target?
Outstanding penal damages stood at ₹2,406 crore. More than 6,000 cases were pending across High Courts, CGIT, and the Supreme Court, with 21,000 potential litigations on EPFO's e-proceedings portal.
How does Vishwas change penal damages and how long is it valid?
Penal damages are reduced to a uniform 1% per month, with 0.25% for up to 2 months and 0.50% for up to 4 months. The scheme is valid for six months and can be extended by another six months.
