EPFO discontinues Covid-19 advance withdrawal facility

EPFO discontinues Covid-19 advance withdrawal facility

The Employees’ Provident Fund Organization (EPFO) has discontinued its Covid-19 advance withdrawal facility with immediate effect, citing the end of the pandemic. This scheme was introduced to provide financial relief to EPF members during the economic hardship caused by Covid-19.

Reason for Discontinuation

The EPFO stated that since Covid-19 is no longer classified as a pandemic, the competent authority has decided to end the advance facility. This decision applies to all EPF accounts, including those under exempted trusts.

Previous Covid-19 Advance Provisions

The Covid-19 advance scheme allowed eligible EPF members to withdraw a non-refundable amount. This amount was capped at the lower of three months’ basic wages and dearness allowance or 75% of the member’s total EPF balance. The scheme was implemented twice – during the initial phase of the pandemic and again during the second wave in 2021.

Impact and Alternative Options

While the discontinuation of the Covid-19 advance facility might affect those who were relying on it, it’s important to remember that regular EPF withdrawal options are still available. Members can explore these options for their financial needs, but they should be mindful of the long-term impact on their retirement corpus.

Conclusion

The EPFO’s decision to end the Covid-19 advance facility reflects the improving economic situation and the decline in Covid-19 cases. Members are advised to be aware of the revised regulations and explore alternative withdrawal options only if absolutely necessary.

EPFO ORDER COPY

EMPLOYEES’ PROVIDENT FUND ORGANISATION
MINISTRY OF LABOUR & EMPLOYMENT. GOVERNMENT OF INDIA

No. WSU/2020/COVID-19/Agendaltem/1701

Dated 12 Jun 2024

To
All Addl CPFCs in charge of Zones
All RPFCs in charge of Regional Offices
All OICs in charge of District Offices

Sub: Discontinuation of Covid-19 Advances under para 68L(3) — Reg.
Ref: No. C_I/Misc./2019-20/VoI.II/Part/ dated 28.03.2020.

Madam/Sir,

Please refer to the Head Office circular under reference forwarding therewith notification GSR.225(E) dated 27.03.2020 inserting Sub-Para (3) under Para 68L of the EPF Scheme, 1952 whereby a non-refundable advance was provided to the EPF members during the outbreak of first wave of Covidl9 and another advance was also allowed in view of second wave w.e.f. 31.05.2021.

As Covid-19 is no more 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.

(This is issued with the approval of the CPFC)

(Raman Dhanasekar)
Regional PF Commissioner-I (WSU)