EPFO Ends Covid-19 Advances; Check All The Details Here

In 2020, amidst the onset of the first wave of the pandemic, the EPFO introduced a non-refundable advance scheme for EPF members

EPF subscribers will continue to have the option to withdraw their account balance prematurely under specific conditions

Source : PTI

The Employees' Provident Fund Organisation (EPFO) has announced the discontinuation of COVID-19 advances for its members. “As COVID-19 is no longer a pandemic, the competent authority has decided to discontinue the said advance with immediate effect. This will be applicable to the exempted trusts also and accordingly may be intimated to all the Trusts coming under your respective jurisdictions," EPFO said in a notification on June 12.

In 2020, amidst the onset of the first wave of the pandemic, the EPFO introduced a non-refundable advance scheme for EPF members. Subsequently, in May 2021, during the second wave of the pandemic, a second advance scheme was also initiated to provide further financial relief to members.

Members were permitted to withdraw an amount equivalent to three months' basic wages (comprising basic pay and dearness allowance) or up to 75 per cent of the balance in their provident fund account, whichever amount was lower. The COVID-19 advance proved immensely beneficial to EPF members during the pandemic, particularly those earning monthly wages below Rs 15,000.

However, EPF subscribers will continue to have the option to withdraw their account balance prematurely under specific conditions, and they can also take about a percentage of their funds. Here are the circumstances in which EPF members are eligible to make withdrawals:

• For a housing loan.
• In case of factory lockout or closure.
• For medical expenses related to the subscriber or a family member.
• Towards the marriage of the subscriber, their son, daughter, brother, or sister.
• For funding post-matriculation education of their children.
• In the event of a natural calamity.
• To purchase equipment necessary for the subscriber's physical disability.
• One year before retirement.
• For investing in the Varishtha Pension Bima Yojana.

It's important to note that complete withdrawal of funds is permitted only upon retirement or after a period of unemployment lasting two months or more. This condition is in place to ensure the long-term financial security of EPF members and to encourage responsible financial planning.