On 3rd April 2025, the Employees’ Provident Fund Organisation (EPFO) issued a clarification regarding the remittance of past contributions by employers through Demand Draft. The circular responds to multiple queries from field offices where employers are unable to pay past dues for employees through the standard Electronic Challan-cum-Return (ECR) system but are willing to pay through Demand Draft. While ECR and internet banking remain the preferred modes of remittance, EPFO clarified that contributions—both employee and employer shares—should not be refused solely because the payment method is not electronic.
The Officer-in-Charge (OIC) of the concerned region may accept a one-time remittance via Demand Draft, provided the employer does not intend to continue this mode for future payments. The Demand Draft should be made payable to the RPFC-in-Charge of the concerned region, at the bank branch where the Regional Office holds its account. Additionally, the employer must provide an undertaking to verify beneficiary details in case a claim arises.
Efforts must also be made to collect returns from such employers, and any applicable damages and interest should be calculated and recovered as per the guidelines set out in the Compliance Manual. This guidance aims to provide a practical resolution for one-time dues recovery without deviating from standard electronic processes for regular contributions. The circular was issued with the approval of the competent authority.
Employees Provident Fund Organisation
(MINISTRY OF LABOUR & ENTPLOYLENT, GOVERNMENT OF INDIA)
Head Office
Block II East Kidwai Nagar, New Delhi 110023
Ref: Compliance/DD/Remittances/M/s Labournet Services India Pvt Ltd/2025/2209 Date: 04 APR 2025
All Addl. CPFC(HQ)s / ACCs, Zonal Offices
All OICs, Regional Offices
All OlCs, District Offices
Subject: Payment of past contributions of employees by an employer through Demand Draft -reg.
Madam/Sir,
References have been received from Field Offices from time to time seeking guidance in cases where the employer is not able to remit the past dues in respect of the beneficiary employees through Electronic Challan-cum-Return (ECR) but has agreed to pay the said dues through Demand Draft.
2. The matter has been examined and although the filing of the ECR and remittance of dues through internet banking should be the preferred mode of remittance, not allowing the employer 10 remit the employee contribution deducted from the employees’ wages and employer contribution should be avoided.
3. It is therefore clarified that where the Officer-in-Charge of the Region is satisfied that such request is for a one-time payment of past dues and the employer is not seeking a mode other than the internet banking for the payment of future remittances, he may collect the dues in the manner as is practiced for recovery of any demand in arrear, i.e., through a Demand Draft in the name of RPFC-in-Charge of the Region and payable at the bank branch where the Regional Office concerned holds a bank account.
4. An undertaking from the employer should be obtained for verification of beneficiaries in case a claim arises.
5. Further, all out efforts should be made to collect the returns from the employer.
6. The corresponding Damages and Interest payable by the employer should be timely determined and collected from the employer in the manner already specified in the Compliance Manual.
(This issues with the approval of Competent Authority)
(Arun Kumar)
Regional PF Commissioner-I (Compliance)
