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EPF is applicable in organisations with 20 or more workers. It pertains to the organised sector of the economy

If you are going through a cash crunch situation and need money immediately for treatment of Coronavirus, then you have an option of withdrawing from your Employees Provident Fund (EPF) account. This is because last year in 2020 the government allowed withdrawals from EPF for covid care, in case of a medical emergency for family members including spouse, parents, or children. Unlike withdrawals for other reasons where you have to serve a minimum of years of service, there is no lock-in period on withdrawal for Covid purpose.

How much can you withdraw from EPF for Covid care?

Under this, a salaried person having an EPF account can withdraw up to 75% of the balance amount or three months’ basic wages plus dearness allowance, whichever is lower.

EPFO website clearly states, “The 75% of the amount standing to your credit is the maximum permissible limit…if 75% of the balance is more than three months wages, advance equal to three months wages (Basic+DA) is sanctioned as per the rules.”

For example, if your monthly salary is Rs 20,000 and if you have a balance of Rs 1 lakh in the EPF account, then the entitled advance amount is Rs 60,000 only. You won’t be entitled to get Rs. 75000 at the rate of 75%. Similarly, if the monthly salary is Rs 30.000, the amount of advance will be restricted to Rs 75000.

How many days does money get credited?
EPFO settles claims within 3 working days. After processing the claims, the cheque is sent to the bank. Bank usually take an additional one to three working days to credit money in your bank account. Remember, the advance to fight the COVID-19 pandemic is available once only.

How to withdraw from EPF for Covid-19?
• Login to Member Interface of Unified Portal (https://unifiedportalmem.epfindia.gov.in/memberinterface)
• Go to Online Services>>Claim (Form-31,19,10C & 10D)
• Enter your Bank Account and verify
• Click on “Proceed for Online Claim”
• Select PF Advance (Form 31) from the drop-down
• Select purpose as “Outbreak of pandemic (COVID-19)” from the drop-down
• Enter the amount required and Upload a scanned copy of the cheque and enter your address
• Click on “Get Aadhaar OTP”
• Enter the OTP received on the Aadhaar linked mobile.
• Claim is submitted

You can also withdraw the amount from its app called Umang
• Open Umang app
• Select EPFO
• Select “Request for Advance (COVID-19)”
• Enter your UAN details and click on ‘Get OTP’ to get the one-time password. Use this OTP to login in to your account.
• Enter the OTP and click on login. Once you are logged in you are required to enter the last four digits of your bank account and select the member ID from the drop-down menu.
• Click on “Proceed for the claim”
• Enter your address. Click on ‘Next’.
• Upload the cheque image with your account number and name printed on it.

What if I have two EPF accounts?
In order to get maximum benefits, you need to transfer all the previous EPF accounts to the latest account. This can be done by filing a transfer claim. Once transferred you can file a covid advance claim to reap maximum benefit.

Is the EPF withdrawal for Covid care taxable?
The withdrawals for Covid care are tax-free in the hands of employees.

Withdrawing from EPF should be the last option, as it is meant for long term savings so that you can have something to lean back on during sunset years.