EPFO has also reiterated that the interest and penalty applicable on old dues will be calculated and recovered as per rules, for which it is necessary to follow the compliance manual of EPFO.
The Employees Provident Fund Organization (EPFO) has announced a big relief for those employers who were not able to pay the old EPF dues of their employees through the Electronic Challan-cum-Return (ECR) system due to technical reasons. EPFO has issued a circular on 4 April 2025 and shared important information in this regard.
According to this new decision, now such employers can pay their old dues through Demand Draft (DD) for one time. However, EPFO has made it clear that ECR and Internet Banking will remain the primary and standard payment process. The option of demand draft will be given only in those cases where payment is not being made due to technical reasons.
Only old dues will be received through DD
According to EPFO, it should be satisfactorily clear to the officer in charge of the regional office that the employer is choosing this option only for one-time old dues and will make payment through internet banking in future. The demand draft will be made in the name of RPFC-in-Charge and will be payable in the same bank branch where the local office of EPFO is located.
Before adopting this process, EPFO will make it mandatory to take an undertaking from the employer. This undertaking should provide a complete list of employees who will get the benefit so that verification of the record is possible in case of any claim in future. Also, the employer will have to file all the necessary returns of the relevant period.
EPF holders will get relief from this
EPFO has also reiterated that the interest and penalty applicable on old dues will be calculated and recovered as per the rules, for which it is necessary to follow the compliance manual of EPFO. This decision has brought special relief to those employers who were not able to make old EPF payments due to technical difficulties. Through this, the way will be clear for the employees to get their stuck money and the process of claims will also become simple and transparent in future.
