EPFO allows employers to make one-time payment of dues via demand draft

Pension fund addresses helps employers can't pay past dues via electronic challan-cum-return

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The Employees’ Provident Fund Organisation (EPFO) has allowed members to make a one-time payment of past dues through a demand draft. According to rules, organisations have to deduct EPF contributions from their employees' salaries and remit them to pension fund through banks. This process is carried out online through the submission of an Electronic Challan-cum-Return (ECR).

 

Why are changes being made?

Several employers encountered technical glitches or delays while filing the electronic challan-cum-return (ECR), which prevented timely deposit of EPF dues. This led to penalties and dissatisfaction among employees.

 

Field offices brought this issue to light, prompting EPFO to respond. In a circular, it advised against denying payments solely due to a missed ECR, particularly when employers are ready and willing to make the payments.

 

The circular clarifies that in cases where employers are unable to make such payments online but are willing to clear past dues through a demand draft, the Officer-in-Charge of the regional office may allow the same. However, this relaxation applies strictly to one-time payments, and employers must continue using the digital mode for all future remittances.

 

The payment is to be made via a demand draft addressed to the Regional Provident Fund Commissioner (RPFC) of the concerned region and payable at the branch where the EPFO office holds an account.

 

“It is therefore clarified that where the Officer-in-Charge of the Region is satisfied that such request is for a one-time payment of past dues and the employer is not seeking a mode other than the Internet banking for the payment of future remittances, he may collect the dues in the manner as is practiced for recovery of any demand in arrear, i.e., through a Demand Draft in the name of RPFC-in-Charge of the Region and payable at the bank branch where the Regional Office concerned holds a bank account,” according to a Ministry of Labour and Employment circular on April 4, 2025,” said the circular.

 

Additionally, an undertaking must be obtained from the employer for verification of beneficiaries in case any claims arise.

 

EPFO has also emphasised the importance of collecting returns from employers and directed that any applicable damages and interest should be calculated and recovered in accordance with the existing compliance manual.