EPFO Update 2025: Good News for Employees!
EPFO has also underlined that it is advisable to follow the compliance manual of EPFO since the interest and penalty payable on past-due will be computed and recovered in line with policies.
For those companies who were unable to pay their employees’ previous EPF dues using the Electronic Challan-cum-Return (ECR) system for technical reasons, the Employees Provident Fund Organisation (EPFO) has announced a large relief. On April 4, 2025 EPFO has published a circular containing pertinent information.
This new ruling allows now such companies to pay their past-due obligations once using Demand Draft (DD). EPFO has made it very evident, nevertheless, that ECR and Internet Banking will remain the major and accepted payment method. Demand draft will only be available in those situations whereby technical reasons prevent payment from being made.
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DD will only pick old dues
EPFO claims that the official in charge of the regional office should be quite clear to him that the company is selecting this option just for one-time old debts and will pay via online banking in going forward. Made under the name RPFC-in-Charge, the demand draft will be paid at the same bank branch where the local EPFO office is housed.
EPFO will mandate that an employer do a project before implementing this approach. This project should offer a whole list of staff members who will benefit from it so that, should a claim arise in the future, record verification is available. The company will also have to complete all required returns for the pertinent period.
EPFO holders will find solace from this
EPFO has also underlined that it is advisable to follow the compliance manual of EPFO since the interest and penalty payable on old dues will be computed and recovered according to the policies. Those companies who were unable to make past-due EPF contributions due to technical issues will find particular relief from this ruling. By means of this, the method will be plain for the staff to retrieve their stopped money and the claims procedure will also become straightforward and open in next years.
Key Highlights of the New Rule
1. One-Time DD Use for Old Dues Only
Companies can use a Demand Draft just once and only for clearing past dues, not for regular ongoing contributions.
2. Payment Mode Priority
EPFO clarified that online payment via ECR and Internet Banking remains the primary method. DDs are only permitted in exceptional cases where online payment wasn’t possible.
3. DD Submission Process
- The DD should be in favor of the “RPFC-in-Charge”.
- It must be submitted at the bank branch tied to the local EPFO office.
4. Documentation Requirements
Before paying by DD, employers must:
- Submit a detailed project outlining all affected employees.
- File all pending returns for the relevant period to ensure proper recordkeeping.
5. Compliance Still Required
EPFO emphasized that companies must follow its Compliance Manual.
Even with the DD option, interest and penalties on late dues will still apply as per existing policy.
6. Better Clarity and Transparency for Employees
This move aims to:
- Clear stuck PF dues, so employees get their rightful money.
- Make the claims process smoother and more transparent in the future.
FAQ’s
- What EPFO guideline is new?
Demand Drafts (DDs) will now be issued by EPFO to release trapped PF funds. - Why now is EPFO using DDs?
To let users with inactive or old accounts receive their money quicker. - For whom is this rule applicable?
For members with account or KYC problems who couldn get PF money. - Will a DD be automatically generated for me?
Only if your case fit. EPFO will forward to you. - Is money still show in my bank account?
Indeed, this DD approach is only for particular situations. - What happens should my address have changed?
To obtain the DD safely, change your address in EPFO records. - Is this faster than claims made online?
Mostly for claims that are stuck; speed depends on the situation. - Does Aadhaar have to be linked to my PF account?
Indeed, both Aadhaar and KYC ought to be changed. - Where could I find my PF claim status?
Log in via your UAN on the EPFO member portal.
