With the rapid development of communication and networking technologies VOIP has become an alternate to traditional telephony. These applications prefer timeliness in packet delivery. To perform load balancing, link utilization and to minimize the packet loss rate Multipath virtual Queue Management System for Effective Packet Scheduling in MPLS networks is proposed. The VoIP flows are dispersed into multiple available label switched paths to perform load balancing and link utilization. Virtual queues are maintained in all output ports to avoid queuing delay and HOL blocking. The proposed system ensures the arrival order of all the packets and plays back in the order of transmission. The performance of the proposed Virtual queuing system is compared with single path CSFQ queuing system with no virtual queue and Simulation results are proposed to show the efficiency of the proposed system.