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

<p><span style="font-weight: 400;">The Employees’ Provident Fund Organisation (EPFO) has announced the discontinuation of COVID-19 advances for its members. &ldquo;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.</span></p>
<p><span style="font-weight: 400;">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.</span></p>
<p><span style="font-weight: 400;">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.</span></p>
<p><span style="font-weight: 400;">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:</span></p>
<ul>
<li style="font-weight: 400;" aria-level="1"><span style="font-weight: 400;">For a housing loan.</span></li>
<li style="font-weight: 400;" aria-level="1"><span style="font-weight: 400;">In case of factory lockout or closure.</span></li>
<li style="font-weight: 400;" aria-level="1"><span style="font-weight: 400;">For medical expenses related to the subscriber or a family member.</span></li>
<li style="font-weight: 400;" aria-level="1"><span style="font-weight: 400;">Towards the marriage of the subscriber, their son, daughter, brother, or sister.</span></li>
<li style="font-weight: 400;" aria-level="1"><span style="font-weight: 400;">For funding post-matriculation education of their children.</span></li>
<li style="font-weight: 400;" aria-level="1"><span style="font-weight: 400;">In the event of a natural calamity.</span></li>
<li style="font-weight: 400;" aria-level="1"><span style="font-weight: 400;">To purchase equipment necessary for the subscriber’s physical disability.</span></li>
<li style="font-weight: 400;" aria-level="1"><span style="font-weight: 400;">One year before retirement.</span></li>
<li style="font-weight: 400;" aria-level="1"><span style="font-weight: 400;">For investing in the Varishtha Pension Bima Yojana.</span></li>
</ul>
<p><span style="font-weight: 400;">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.</span></p>
<p><strong>Also Read: <a title="EPFO Sees 3-fold Rise In Smartphone DLC Submission In 2023-24" href="https://news.abplive.com/business/epfo-sees-3-fold-rise-in-smartphone-digital-life-certificate-submission-2024-2023-1694173" target="_blank" rel="dofollow noopener">EPFO Sees 3-fold Rise In Smartphone DLC Submission In 2023-24</a></strong></p>



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