Around six crore subscribers of the Employees Provident Fund Organisation (EPFO) can now withdraw a second non-refundable COVID-19 advance, the Labour Ministry announced on Monday. The initial provision for special withdrawal to meet financial needs during the pandemic was introduced in March 2020.
The advance will allow subscribers to withdraw money equivalent to three months basic wages plus dearness allowances, or up to 75% of the amount standing to their credit in their Provident Fund account, whichever is less. Members can apply for lesser amounts as well. Those who have already availed the first COVID-19 advance are also free to opt for a second advance. The provision and process for withdrawal is the same for both advances.
“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,” said the Ministry statement. “As on date, EPFO has settled more than 76.31 lakh COVID-19 advance claims thereby disbursing a total of Rs. 18,698.15 crore.”
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Given the urgent need of members for financial support, especially with a mucormycosis epidemic during the second wave of the pandemic, EPFO said it will accord top priority to COVID-19 claims.
“EPFO is committed to settle these claims within three days of their receipt. For this, EPFO has deployed a system driven auto-claim settlement process in respect of all such members whose KYC requirements is complete in all respects,” said the statement. “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.”