Employees can withdraw 75% of Employees Provident Fund for COVID-19 pandemic

The Ministry of labour and Employment vide a Notification dated 27th March 2020 has published the Employees’ Provident Funds (Amendment) Scheme, 2020 and permits a non-refundable advance from the provident fund account to the employees employed in any establishment or factory located in an area declared as affected by outbreak of any epidemic or pandemic by appropriate Government.

This Notification inserts a sub-paragraph 3 to paragraph 68L in the Employees’ Provident Funds Scheme, 1952, which provides that -the Commissioner or, where so authorized by the Commissioner, any officer subordinate to him, may, on an application from any member of this Scheme employed in any establishment or factory located in an area declared as affected by outbreak of any epidemic or pandemic by the appropriate Government, permit a non-refundable advance from the provident fund account of such member not exceeding the basic wages and dearness allowances of that member for three months or up to seventy-five per cent. of the amount standing to his credit in the Fund, whichever is less. Thus, as per this clause, this non-refundable advance is applicable to-

  1. The employees of any establishment or factory must be located in an area declared as affected by outbreak of any epidemic or pandemic by the appropriate Government.
  2. The employee to be a member of EPF schemes. He has to make an application with the intention to withdraw advance from PF Fund.
  3. The amount of advance shall not exceed 3 months wages (basic + DA) of that member or 75% of the amount standing to his credit in the Fund. Among these two amounts, he shall get whichever is less.
  4. This withdrawal from the EPF account will be non-refundable.

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