New Delhi: The Employees Provident Fund Organization (EPFO) has taken a decision that has brought relief to lakhs of employees and employers. Now employers who are unable to pay old EPF dues due to technical reasons will be able to deposit a lump sum amount through demand draft (DD). In a circular issued on April 4, 2025, EPFO ​​​​informed about this new system, which has cleared the way for the stuck money to reach the employees.

What is the new rule?

EPFO ​​has clarified that Electronic Challan-cum-Return (ECR) and Internet Banking will continue to be its primary payment system. But in cases where old dues could not be deposited due to technical flaws, the option of DD will be given. A senior official said, “This facility is only for old dues. The employer will have to give it in writing to the regional office that he will make only online payments in future.” DD will be payable in the name of the regional in-charge (RPFC) in the bank branch where the local office of EPFO ​​is located.

Relief to employees

The biggest benefit of this change will be for those employees whose money was stuck due to technical glitches. Sanjay Mishra, a private school teacher in Delhi, says, “My old EPF was stuck for the last two years. The school management used to say that there is a problem in the system. Now, after hearing this news, there is hope.” This move of EPFO ​​will not only make the dues reach the employees faster, but will also make the process of claims transparent.

Strict conditions also included

Some conditions have also been added with the new facility. The employer will have to give an undertaking, which will contain the complete list of employees for whom the dues are being deposited. Also, it will be mandatory to file all the returns of the relevant period. EPFO ​​also clarified that interest and penalty on the dues will be recovered as per the rules. An official said, “Our aim is to ensure compliance with the rules, so that there is no dispute in future.” Solution to technical difficulties

Technical flaws in EPFO’s online system often hindered the deposit of old dues. This was a big problem especially for small employers. Labor expert Ajay Sharma says, “The ECR system is modern, but there was a problem in updating old records. The option of DD is a practical way to fill this gap.” He believes that this step will reduce the pressure on employers and protect the interests of employees.

Employers’ response

Many employers have welcomed this decision. Rakesh Gupta, owner of a small firm in Gurgaon, says, “We had some dues of 2018, but could not be deposited due to a glitch in the system. Now DD will ease this burden.” However, some say that the calculation of interest and penalty should be made more clear, so that there is no confusion.

Way of the future

This move of EPFO ​​​​will prove to be helpful in settling old dues, but experts say that the technical system needs to be strengthened further. Sharma says, “DD is a temporary solution. The real solution will come when the online system becomes completely foolproof.” Also, employees are being advised to check their EPF account and ask the employer about the status of the dues.

The big message

This change is not just an administrative reform, but also reflects the accountability of EPFO ​​​​towards the employees. This initiative to withdraw the stuck money by overcoming technical difficulties will bring relief to millions of people. Now all eyes are on how quickly this system is implemented and when the money reaches the accounts of the employees.

This move of EPFO ​​​​once again proves that even a small decision taken at the right time can provide big relief. The hopes of the employees are now pinned on this new path.