PF rules for withdrawal notified
The EPFO on Saturday morning introduced an online claim settlement facility
- Published 30.03.20, 2:56 AM
- Updated 30.03.20, 2:56 AM
- a min read
The Union labour ministry has allowed over 6 crore subscribers to the Employees’ Provident Fund Organisation (EPFO), the retirement fund, to withdraw an amount not exceeding their three months’ basic pay and dearness allowance from their account in view of the lockdown.
The EPFO on Saturday morning introduced an online claim settlement facility, without the need for manual intervention, for all KYC-compliant subscribers for the duration of the lockdown.
The ministry had issued a notification on March 28 to amend the Employees’ Provident Fund Scheme, 1952, a labour ministry statement said. The notification permitted non-refundable withdrawal not exceeding the basic wages and dearness allowance for three months or up to 75 per cent of the amount standing to the credit of their EPF account, whichever is less, the ministry said.
Covid-19 has been declared a pandemic and, therefore, employees working in establishments and factories across India, who are members of the EPF scheme, are eligible for non-refundable advance.
A sub-para (3) under para 68L has been inserted into the EPF scheme, 1952. The amended Employees Provident Fund (Amendment) Scheme, 2020, came into force from March 28.
Following the notification, the EPFO has directed its field offices to promptly process any applications received from members so that the relief enables the workers and their families fight the pandemic.
“We are happy to inform that our online claim filing facility for Covid-19 withdrawals has been successfully launched at 11am today (Saturday). IT (information technology) division of the EPFO has devised a system of auto settlement of claims through our centralised server in respect of all such members whose KYC (know your customer) data is fully updated and compliant,” an official said.
The official added that it would be possible to settle claims within three days. “This facility will stop manual intervention. The EPF claims will be settled fully online,” the official said.