In view of the lockdown across the country to fight COVID-19, the Union Ministry of Labour and Employment on Sunday allowed over six crore subscribers of the retirement fund body Employee Provident Fund (EPF) to withdraw an amount of non-refundable advance not exceeding their three months’ basic pay and dearness allowance from their EPF account.
The Ministry has notified an amendment in the Employee Provident Fund (EPF) scheme, allowing withdrawl of non-refundable advance, in the wake of coronavirus. As per the latest information available on the EPF website, the entity maintains 19.34 crore accounts (as of 2016-17).
The notification permits withdrawal of up to the amount of basic wages and dearness allowance for three months or up to 75 per cent of the amount standing to member's credit in the EPF account, whichever is less, in the event of outbreak of the pandemic. '
COVID-19 has been declared pandemic by appropriate authorities for the entire country and therefore, employees working in establishments and factories across entire India, who are members of the EPF Scheme, 1952, are eligible for the benefits of non-refundable advance. A sub-para (3) under para 68L has been inserted in the EPF scheme, 1952.
The amended Employees Provident Fund (Amendment) scheme, 2020 has come into force from March 28.
Following the notification, the Employees' Provident Fund Organisation (EPFO) has issued directions to its field offices for promptly processing any applications received from members to help them fight the situation.
In its communication, the EPFO has stated that officers and staff must process claims of EPF subscribers promptly so that relief reaches the worker and his family to help them fight with COVID-19.
The Finance Minister had, last week, announced that about 4.8 crore employees who are members of EPF can withdraw 75 per cent of the amount standing to their credit, limited to three months’ wages.