EPFO ​​has issued a circular on April 4, 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 possible 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 payment of 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 contain the complete list of employees receiving the benefit so that verification of records 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 holder 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 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.

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The post New EPFO Rule: EPFO allows one-time payment of past EPF dues via Demand Draft. Details Here first appeared on Rightsofemployees.com.