EPFO Update: Members Can Now Withdraw Second Covid-19 Advance From PF Account
Under the provision, members can apply for non-refundable withdrawal to the extent of the basic wages and dearness allowances for three months or up to 75 per cent of the amount standing to member's credit in the EPF account, whichever is less.
New Delhi: With a view to help the common man deal with health emergencies owing to Covid-19 outbreak and the recent cases of 'mucormycosis’ or black fungus cases emerging across the country, the Employees' Provident Fund Organisation (EPFO) has now allowed its members to avail second non-refundable Covid-19 advance.
What does it mean?
EPFO members who have already availed the first Covid-19 advance are now allowed to apply for the second advance as well. “The provision and process for withdrawal of second Covid-19 advance is same as in the case of first advance,” the Labour Ministry said in a statement. Also Read:
The move has been considered keeping in mind the urgent need of members for financial support in these trying times.
Introduced in March 2020, under Pradhan Mantri Garib Kalyan Yojana (PMGKY), the provision for special withdrawal was made to help members meet their meet the financial need during pandemic.
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How can members avail the benefits?
Under this provision, members can opt for non-refundable withdrawal to the extent of the basic wages and dearness allowances for three months or up to 75 per cent of the amount standing to member's credit in the EPF account, whichever is less, is provided.
Members can also apply for lesser amount as well. "The COVID-19 advance has been a great help to the EPF members during the pandemic, especially for those having monthly wages of less than Rs. 15,000," the ministry added.
As on date, EPFO has settled more than 76.31 lakh Covid-19 advance claims thereby disbursing a total of Rs. 18,698.15 crore.
How much will it take to settle such claims?
The EPFO said it will settle these claims within three days of their receipt. For this, EPFO has deployed a system driven auto-claim settlement process in respect of all such members whose KYC requirements is complete in all respects. Auto-mode of settlement enables EPFO to reduce the claim settlement cycle to just 3 days as against the statutory requirement to settle the claims within 20 days, it added.
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