Daijiworld Media Network - New Delhi

New Delhi, Sep 28: The Employees’ Provident Fund Organisation (EPFO) has rolled out an upgraded electronic challan-cum-return (ECR) system starting from the wage month of September, designed to streamline return filing for employers and reduce errors, according to a recent notification by the Central Provident Fund Commissioner.

The enhanced platform separates return submission from payment processing and incorporates system-driven validations to prevent incorrect filings. It also automatically calculates damages and interest as per sections 14B and 7Q of the Employees’ Provident Funds Act. Under these sections, employers must pay interest on delayed dues, and penalties can be imposed for payment defaults.

While the familiar file format (.txt) remains unchanged, employers can now file regular, supplementary, or revised returns with greater ease. The new system is expected to reduce common mistakes, particularly concerning pension contributions under the Employees’ Pension Scheme (EPS).

For example, the system will flag errors where contributions are mistakenly made for employees earning over Rs 15,000 per month, who are not eligible for EPS. Additionally, it will automatically stop EPS contributions for employees above 58 years of age unless a deferred pension option is specified—addressing previous complaints about incorrect remittances.

An EPFO official said these improvements are part of ongoing efforts to make the organisation more user-friendly and to simplify compliance for employers while ensuring accuracy and clarity for all stakeholders.