Amid the second wave of Covid-19, the Employees’ Provident Fund Organisation (EPFO) on Monday allowed its members to avail second non-refundable Covid-19 advance. The provision for special withdrawal to meet the financial need of members during the pandemic was introduced in March 2020, under Pradhan Mantri Garib Kalyan Yojana (PMGKY).
Under this provision, non-refundable withdrawal to the extent of the basic wages and dearness allowances for three months or up to 75% of the amount standing to member’s credit in the EPF account, whichever is less, is provided. Members can apply for a lesser amount also.
“The Covid-19 advance has been a great help to the EPF members, especially for those having monthly wages of less than Rs 15,000. To date, EPFO has settled more than 76.31 lakh Covid-19 advance claims thereby disbursing a total of Rs 18,698.15 crore,” the ministry of labour and employment said.
“In such trying times, EPFO endeavours to lend a helping hand to its members by meeting their financial needs. Members who have already availed of the first Covid-19 advance can now opt for a second advance also. The provision and process for withdrawal of second Covid-19 advance is same as in the case of first advance,” the ministry added.
“Considering the urgent need of members for financial support in these trying times, it has been decided to 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 are complete in all respects. Auto-mode of settlement enables EPFO to reduce the claim settlement cycle to just three days as against the statutory requirement to settle the claims within 20 days,” the ministry said.
Download Money9 App for the latest updates on Personal Finance.