Employees Provident Fund Organisation to permit second COVID-19 advance withdrawal
The facilitate will allow subscribers to take money equivalent to three months basic wages plus dearness allowances, or up to 75% of the amount standing to their credit in their Provident Fund account
Throughout six crore subscribers of the EPFO (Employees Provident Fund Organisation) can now withdraw a second non-refundable COVID-19 pandemic advance, the Labour Ministry announced on Monday. The initial provision for special withdrawal to fulfill their financial needs during the pandemic was introduced in March 2020.
The advance will allow subscribers to withdraw money equivalent to three months basic wages plus dearness allowances, or up to 75 percent of the currency standing to their credit in their Provident Fund account, whichever is smaller amount. Members can also apply for lesser amounts as well. The employees who have already benefited the first COVID-19 advance are also free to opt for a second advance. The provision and process for withdrawal is identical for both advances.
“The COVID-19 advance has been an excellent favor to the Employee Provident Fund members during the pandemic situation of COVID-19, especially for those having monthly wages of less than Rs. 15,000,” said the Ministry statement. “As on date, EPFO has settled over Rs. 76.31 lakh COVID-19 advance claims thereby disbursing a total of Rs. 18,698.15 crore.”
Given the important requirements of members for financial support, especially with a mucormycosis epidemic during the second wave of the pandemic, EPFO said it will accord topmost priority to COVID-19 pandemic claims.
“EPFO is committed to resolving these claims within three days of their filed receipt. For this, EPFO has deployed a system driven auto-claim settlement process in respect of all such members whose KYC requirements are completely altogether respects,” said the statement. Auto-mode of settlement enables EPFO to reduce the claim settlement cycle to merely 3 days as against the statutory requirement to settle the claims within 20 days.