Tuesday, October 21, 2025
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EPFO Allows Demand Drafts for Past Dues to Resolve Technical Issues

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Employees’ Provident Fund Organisation (EPFO) has announced a significant policy change, allowing employers to make one-time payments of past dues via demand drafts.

This decision comes in response to technical glitches and delays in the Electronic Challan-cum-Return (ECR) system, which have hindered timely deposit of EPF contributions.

The move aims to address employer concerns while ensuring employee benefits are not compromised.

The ECR system is the standard online procedure for employers to remit EPF contributions deducted from employees’ salaries.

However, many employers have faced technical issues while filing ECRs, leading to delays in payments.

These delays have resulted in penalties and dissatisfaction among employees, prompting field offices to raise the issue with EPFO.

The New EPFO Policy: Demand Drafts for Past Dues

In a circular issued on April 4, 2025, the Ministry of Labour and Employment clarified the new policy.

Employers who are unable to make payments online due to ECR glitches can now settle past dues through demand drafts.

This relaxation is strictly limited to one-time payments, and employers must continue using the digital mode for future remittances.

  • Procedure:
    • The demand draft must be addressed to the Regional Provident Fund Commissioner (RPFC) of the concerned region.
    • It should be payable at the bank branch where the EPFO office holds an account.
    • Employers must submit an undertaking for beneficiary verification to ensure transparency.

Ensuring Compliance and Transparency

EPFO has emphasized the importance of collecting employer returns alongside the remittance to maintain accurate employee records.

Additionally, any applicable interest and damages on overdue amounts must be calculated and recovered in accordance with the compliance manual.

The Officer-in-Charge of the region must ensure that the request is genuinely for a one-time payment, as highlighted in the circular.

This measure prevents misuse of the policy and keeps it as an exception to the standard online process.

Implications for EPFO Employers and Employees

The new policy provides relief to employers struggling with technical issues, enabling them to clear past dues without further delays.

This ensures that employers promptly deposit EPF contributions, safeguarding employees’ benefits.

While the policy addresses immediate concerns, EPFO continues to encourage the use of the ECR system and internet banking for regular payments.

This dual approach balances flexibility with the need for digital efficiency.


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Sahiba Sharma
Sahiba Sharmahttps://sightsinplus.com/
Sahiba Sharma, Senior Editor - Content at SightsIn Plus