The number of new monthly subscribers under the employees' provident fund (EPF) saw a rise of close to 10 per cent to 10.14 million in June, up from 927,703 in May.
To support its subscribers during the second wave of Coronavirus pandemic, Employees’ Provident Fund Organisation (EPFO) has now allowed its members to avail second non-refundable Covid-19 advance.
Members who have already availed first Covid-19 advance can now opt for a second advance also. The provision and process for withdrawal of second Covid-19 advance are same as in the case of first advance.
Considering urgent need of members for financial support in these trying times, Ministry of Labour and Employment in a statement said, 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.”
For this, the Ministry said, EPFO has deployed a system driven auto-claim settlement process in respect of all such members whose KYC requirements are complete in all respects.
“Auto-mode of settlement enables EPFO to reduce the claim settlement cycle to just 3 days as against the statutory requirement to settle the claims within 20 days.”
The provision for special withdrawal to meet the financial need of members during pandemic was introduced in March last year under Pradhan Mantri Garib Kalyan Yojana (PMGKY).
An amendment to this effect was made by Ministry of Labour and Employment in Employees’ Provident Funds Scheme, 1952 by inserting therein sub-para (3) under paragraph 68L, through notification in the Official Gazette.
Under this provision, non-refundable withdrawal to the extent of the basic wages and dearness allowances for three months or up to 75 per cent of the amount standing to member’s credit in the EPF account, whichever is less, is provided.
“Members can apply for lesser amount also,” said the Ministry.
The Covid-19 advance has been a great help to the EPF members during the pandemic, especially for those having monthly wages of less than Rs 15,000.
As of date, EPFO has settled more than 76.31 lakh Covid-19 advance claims thereby disbursing a total of Rs 18,698.15 crore.