New Delhi: The Employees Provident Fund Organization (EPFO) has taken a step that opens the way to resolve old dues stuck in technical difficulties. In a circular issued on April 4, 2025, EPFO ​​​​announced that now employers will be able to make lump sum payment of old EPF dues of their employees through demand draft (DD). This decision has brought great relief to those employers who were not able to make payment due to the flaws of the Electronic Challan-cum-Return (ECR) system.

How will payment be made through DD?

EPFO ​​has clarified that ECR and Internet Banking will continue to be its main payment system. The option of DD is only for those special cases where technical difficulties are becoming a hindrance. An official said, “The employer will have to inform the regional office in writing that he is using DD for old dues and will make online payment in future.” The DD will be prepared in the name of the regional in-charge (RPFC) and will be deposited in the same bank branch where the local office of EPFO ​​is located.

Employees’ hopes raised

This change will benefit those employees the most, whose money was stuck for years. Reena Sharma, who works in a private company in Mumbai, says, “I had not received my 2019 EPF dues till now. The company used to say that there was a problem in the system. Now I am happy to hear the news of payment through DD.” This step will not only deliver the dues to the employees, but will also make claims easy and transparent in future.

Relief with strictness

EPFO has also attached some conditions with this facility. The employer will have to give an undertaking, which will contain a complete list of employees for whom the dues are being deposited. Also, it will be necessary to submit all the returns of the relevant period. A source said, “This step has been taken to keep the records organized and avoid any dispute later.” Interest and penalty on the dues will also be recovered as per the rules, as prescribed in the EPFO ​​​​compliance manual.

Answer to technical glitch

Technical glitches in the ECR system were a major hurdle in clearing old dues. This was especially difficult for small businesses and employers with old records. Labour expert Priya Mehta says, “This is a practical solution. Technology does not cooperate every time, and DD will solve the old problem.” She believes that this will reduce the pressure on employers and employees will get their rights.

Employers welcome

Employers have welcomed this move. Anil Gupta, a small businessman from Delhi, says, “Our 2020 dues were stuck due to technical reasons. Now DD will solve this issue.” However, some say that the calculation of interest and penalty should be made more transparent. An employer said, “We should be told clearly how much extra will have to be paid.”

The first step in a long journey

This change will help in settling old dues, but experts say that EPFO ​​will have to strengthen its technical system further. Mehta says, “DD is an immediate relief, but the online system should be made such that such a requirement is not required in future.” Employees are also being appealed to check their accounts and clarify the status of dues from the employer.

A ray of hope

This decision of EPFO ​​is like a bridge between employers and employees. It not only removes technical flaws, but also shows that the organization is sensitive towards the interests of its members. Now everyone’s eyes are on how soon this process is implemented and when the stuck money reaches the hands of the employees.

This small change has brought great hope for millions of people. The wait for the stuck money is now on the verge of ending.