EPF due payment via demand draft: EPFO allows one-time payment of past EPF dues via Demand Draft

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The EPFO now permits employers to make one-time payments of past EPF dues via Demand Drafts, addressing situations where the standard Electronic Challan-cum-Return (ECR) system is unfeasible. While emphasizing internet banking as the preferred method, the EPFO allows this alternative if the regional officer is satisfied it's a one-time request.

EPF due payment via demand draft: EPFO allows one-time payment of past EPF dues via Demand DraftThe Employees' Provident Fund Organisation (EPFO) has issued a clarification addressing concerns raised by various Field Offices regarding situations where employers are unable to remit past dues through the standard Electronic Challan-cum-Return (ECR) system. In such cases, employers have expressed willingness to settle these dues using Demand Drafts.DA hiked by 2% in March 2025: What is the current dearness allowance of Central government employees?The EPFO has taken a realistic approach to ensure that employee benefits are not postponed because of technical or transitional difficulties encountered by employers, even though the organization continues to stress that filing ECR and making payments via internet banking remains the preferred and standard method for remitting dues.

If the Officer-in-Charge of the Region is satisfied that the request is for a one-time payment of past dues and the employer is not seeking a mode other than Internet banking for future remittances, he may collect the dues through a Demand Draft in the name of the RPFC-in-Charge of the Region and payable at the bank branch where the regional office holds a bank account.According to a Ministry of Labour and Employment circular on April 4, 2025, “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.”Employer undertaking and return filing mandatoryTo maintain transparency and proper documentation, an undertaking must be collected from the employer, confirming the list of beneficiary employees. This is especially important for verification purposes in the event of a future claim.

Additionally, the EPFO has instructed that all efforts be made to ensure the employer submits the necessary returns alongside the remittance. This will ensure that employee records remain updated and accurate.Damages and interest to be collected timelyThe EPFO has reiterated that damages and interest payable on the overdue amount must be assessed and collected promptly.

This must be done in accordance with procedures already defined in the EPFO compliance manual..