Amid pandemic, EPFO allows members to avail second Covid advance

Decision taken in view of second wave of Covid-19 pandemic, says Union govt; EPFO says it is committed to settle these claims within three days of their receipt

To support its subscribers during the second wave of Covid pandemic, EPFO opn Monday now allowed its members to avail second non-refundable Covid advance. said government. The provision for special withdrawal to meet the financial need of members during pandemic was introduced in March 2020, under Pradhan Mantri Garib Kalyan Yojana (PMGKY). An amendment to this effect was made by Ministry of Labour & Employment in Employees’ Provident Funds Scheme, 1952.

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 lesser amount also.

"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 Ministry of Labour & Employment. As on date, EPFO has settled more than 7.6 million Covid advance claims thereby disbursing a total of Rs 18,698.15 crore.

"During the second wave of Covid-19 pandemic, ‘mucormycosis’ or black fungus has been declared an epidemic recently. In such trying times, EPFO endeavours to lend a helping hand to its members by meeting their financial needs. Members who have already availed 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 further said.

Considering urgent need of members for financial support in these trying times, it has been decided to accord top priority to Covid claims. EPFO said it 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. 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.