EPFO: Employers Can Now Pay Old EPF Dues via One-Time Demand Draft

The Employees’ Provident Fund Organisation (EPFO) has introduced a new option allowing employers to clear pending EPF dues through a one-time demand draft payment. This measure, outlined in a circular dated April 4, 2025, provides an alternative to the existing online process involving Electronic Challan-cum-Return (ECR) and internet banking.

Background

Employers are typically required to deduct EPF contributions from employees’ salaries and deposit them with the EPFO through ECR filings and online payments. However, technical difficulties or delays in ECR filing have, in some cases, resulted in overdue payments. These delays have also led to penalties and complaints from employees.

Request from Field Offices

Field offices of the EPFO had raised concerns about cases where employers, despite being willing to pay, were unable to remit past dues due to ECR-related issues. In response, the EPFO stated that non-acceptance of dues solely due to missed ECR filings should be avoided.

Eligibility and Process

The option to pay via demand draft is limited to one-time payments of past dues only. Employers cannot use this method for future or recurring payments.

Approval from the Officer-in-Charge of the EPFO regional office is required. The officer must confirm:

• The payment is a one-time request
• The employer will not use this route for future remittances

If approved, the employer can submit a demand draft payable to the Regional PF Commissioner (RPFC) at the EPFO’s designated bank.

Required Documentation

Employers must provide:

• An undertaking stating the nature of the payment
• A list of affected employees
• ECR filings along with the payment to ensure employee records are updated

Filing Expectations

Even when paying via demand draft, employers must submit ECR data to maintain accurate records. The EPFO has clarified that this offline payment is only a temporary arrangement and regular payments must continue through ECR and online banking.

Conclusion

The provision enables clearance of old dues through a demand draft under specific conditions, without altering the standard EPF remittance process for ongoing and future contributions.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.