Union Labour Minister Mansukh Mandaviya launched the Vishwas Scheme at the 238th Central Board of Trustees (CBT) meeting of EPFO in New Delhi on October 13, 2025. The scheme rationalises penal damages under the Employees' Provident Fund and Miscellaneous Provisions Act, 1952, with the objective of reducing litigation between EPFO and employers. Under the scheme, employers who clear outstanding dues can avail significantly reduced penal charges, thereby encouraging voluntary compliance. The initiative is expected to ease the compliance burden on MSMEs and improve EPFO's recovery rate.
Labour Ministry Launches Vishwas Scheme to Curb EPF Litigation
AQuick answer
Union Labour Minister Mansukh Mandaviya launched the Vishwas Scheme at the 238th Central Board of Trustees (CBT) meeting of EPFO in New Delhi on October 13, 2025. The scheme rationalises penal damages under the Employees' Provident Fund and Miscellaneous Provisions Act, 1952, with the objective of reducing litigation between EPFO and employers. Under the scheme, employers who clear outstanding dues can avail significantly reduced penal charges, thereby encouraging voluntary compliance. The initiative is expected to ease the compliance burden on MSMEs and improve EPFO's recovery rate.
Key facts
- Labour Minister Mansukh Mandaviya launched the Vishwas Scheme on October 14, 2025.
- The scheme rationalises penal damages under the EPF and Miscellaneous Provisions Act, 1952.
- Employers clearing outstanding EPFO dues can avail significantly reduced penal charges.
- The initiative encourages voluntary compliance and reduces EPFO-employer litigation.
- MSMEs are expected to benefit most from the eased compliance burden.
- The scheme was launched at the 238th Central Board of Trustees meeting of EPFO.
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Practice MCQ from this story
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Linked questionMedium
At which meeting was the EPFO Vishwas Scheme launched under Union Labour Minister Mansukh Mandaviya?
Explanation · Correct answer A
The Vishwas Scheme was launched at the 238th meeting of the Central Board of Trustees (CBT), EPF, chaired by Union Labour Minister Mansukh Mandaviya in New Delhi. The scheme aims to reduce litigation by rationalising penal damages for delayed remittance of provident fund dues.
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Frequently asked questions
What is the Vishwas Scheme launched by the Labour Ministry and what is its objective?
The Vishwas Scheme was launched by Union Labour Minister Mansukh Mandaviya on October 14, 2025 at the 238th CBT meeting of EPFO. It rationalises penal damages under the EPF and Miscellaneous Provisions Act, 1952 with the objective of reducing litigation between EPFO and employers.
How does the Vishwas Scheme benefit employers with outstanding EPFO dues?
Under the Vishwas Scheme, employers who clear their outstanding EPFO dues can avail significantly reduced penal charges. This financial incentive encourages voluntary compliance rather than prolonged litigation, benefiting both employers and the provident fund system.
Which category of businesses is expected to benefit most from the Vishwas Scheme?
MSMEs (Micro, Small and Medium Enterprises) are expected to benefit most from the eased compliance burden under the Vishwas Scheme. These smaller businesses often struggle with cash flow issues and the existing heavy penal charges on delayed EPFO contributions.
What is the Central Board of Trustees (CBT) of EPFO and what was its 238th meeting about?
The Central Board of Trustees (CBT) is the apex decision-making body of the Employees' Provident Fund Organisation. Its 238th meeting, held on October 14, 2025 in New Delhi, was the occasion at which the Vishwas Scheme was formally launched.
What is the legal basis for EPFO's penal damages that the Vishwas Scheme rationalises?
EPFO's penal damages are levied under the Employees' Provident Fund and Miscellaneous Provisions Act, 1952. The Vishwas Scheme rationalises these damages to make them proportionate and less punitive, encouraging employers to regularise their dues voluntarily.
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