The Employees’ Provident Fund Organisation (EPFO) has introduced a novel relief measure enabling employers to settle old EPF dues through a one-time payment via demand draft. The EPFO recently announced that it will now be accepting one-time payments of past dues via demand draft, deviating from the standard online process where employers submit Electronic Challan-cum-Return (ECR) and make payments through internet banking.
This move marks a shift from the conventional online process, which involves submitting an Electronic Challan-cum-Return (ECR) and paying dues through internet banking. This adjustment comes as a response to persistent technical challenges faced by employers, which have hindered the timely deposit of EPF dues, subsequently leading to penalties and employee dissatisfaction. In a recent circular, the EPFO expressed its willingness to accept these demand draft payments.
Employers have frequently encountered issues with the ECR filing process, causing delays in payment and subsequent penalties. Field offices have brought these concerns to the EPFO, prompting action. The organisation has now acknowledged that refusing payments purely due to ECR filing issues should be avoided. Importantly, this measure is reserved for one-time payments of past dues only, ensuring that employers committed to fulfilling their obligations are not unduly penalised.
The process mandates verification by the Officer-in-Charge of the respective EPFO region to confirm that the payment request is singular and that the employer will not employ demand drafts for future dues. Upon satisfaction of these criteria, payments may be directed to the Regional PF Commissioner (RPFC) at the EPFO’s bank branch. This step aims to maintain transparency and accountability within the system.
Employers are required to submit an undertaking accompanied by a list of affected employees. This documentation serves as a safeguard for future claims or audits. Additionally, they must continue to file returns alongside the remittance to maintain accurate and current employee records. Although this offline method is now available, the EPFO continues to advocate for the use of the ECR and internet banking systems for regular and upcoming payments, emphasising the importance of digital processes for efficiency and compliance.