WHAT IS EPF ADVANCE?
EPF Advance is a non-refundable advance that is given to the EPF members from their EPF account, employed in a factory or establishment in a located area. Such areas are declared to be affected by the pandemic by the government.
In March 2020, the PM introduced a new scheme called the Garib Kalyan Yojana (PMGKY). This PMGKY helped workers facing financial crises during the first covid wave.
EPF ADVANCE DURING THE SECOND COVID WAVE-
The government on 31st May 2021 said that due to the economic impact because of covid-19, members of the Employee Provident Fund are permitted to withdraw a non-refundable advance from their EPF accounts. Due to the pandemic people earning less than Rs 15000 monthly are facing great difficulty. This scheme is proving very helpful to the EPF members at such a time.
● In the EPF Scheme 1952, a new sub-para (3) has been added under Paragraph 68L through GSR No.225 (E) published in the Gazette of India (Extraordinary), Part II- Section 3 (1) to provide the members with this benefit.
● As the country is facing the second wave of pandemics, the spread of black fungus is declared an epidemic. So, EPFO extends a helping hand for people facing financial difficulties. EPF members, who have already availed of the first covid-19 advance in March 2020, can now opt for the second advance also.
CLAIM UNDER THIS SCHEME-
● This scheme allowed withdrawal of non-refundable funds from their respective EPF accounts to the extent of basic wages and dearness allowance for up to 3 months or 75% of the total credit standing in the account, whichever is less.
● To claim this advance, a person can file online if their UAN is validated with the Aadhaar and KYC of the Bank account and Mobile number is seeded in UAN.
● An Auto-claim system has been deployed by the EPFO that helps the process of the settlement in just 3 days, which previously took 20 days.
“Considering the urgent need of members for financial support in these trying times, it has been decided to accord top priority to COVID-19 claims. EPFO is committed to settling these claims within three days of their receipt,” the notification read.
EPF MEMBERS ALLOWED TO AVAIL SECOND COVID-19 ADVANCE
WHAT IS EPF ADVANCE?