Union Labour Ministry notifies amendment in EPF Scheme to allow withdrawal of non-refundable advance by EPF members in the event of outbreak of pandemic

Union Ministry of Labour and Employment has issued notification GSR 225(E) amending EPF Scheme 1952 to allow withdrawal of non-refundable advance by EPF members/subscribers in the wake of COVID -19 pandemic in the country. The notification permits withdrawal of upto the amount of basic wages and dearness allowance for three months or upto 75% of the amount standing to member’s credit in the EPF account, whichever is less, in the event of outbreak of epidemic or pandemic.

COVID-19 has been declared pandemic by appropriate authorities for the entire country and therefore employees working in establishments and factories across entire India, who are members of the EPF Scheme, 1952 are eligible for the benefits of non-refundable advance. A sub-para(3) under para 68L has been inserted in the EPF scheme,1952.The amended scheme Employees Provident Fund (Amendment) scheme,2020 has come into force from 28 March,2020.

Following the notification, EPFO has issued directions to its field offices for promptly processing any applications received from EPF members to help them fight the situation. In its communication EPFO has stated that officers and staff must process claims of EPF subscribers promptly so that relief reaches the worker and his family to help them fight with COVID-19.

MINISTRY OF LABOUR AND EMPLOYMENT

NOTIFICATION

New Delhi, the 27th March, 2020

G.S.R. 225(E).—In exercise of the powers conferred by section 5 read with sub-section (1) of section 7 of the Employees’ Provident Funds and Miscellaneous Provisions Act, 1952 (19 of 1952), the Central Government hereby makes the following Scheme further to amend the Employees’ Provident Funds Scheme, 1952, namely:‑

1. (1) This Scheme may be called the Employees’ Provident Funds (Amendment) Scheme, 2020.

(2) It shall come into force on the date of its publication in the Official Gazette.

2.    In the Employees’ Provident Funds Scheme, 1952, i n paragraph 68L, after sub-paragraph (2), the following sub-paragraph shall be inserted, namely:-‑

“(3) The Commissioner or, where so authorised by the Commissioner, any officer subordinate to him, may, on an application from any member of this Scheme employed in any establishment or factory located in an area declared as affected by outbreak of any epidemic or pandemic by the appropriate Government, permit a non-refundable advance from the provident fund account of such member not exceeding the basic wages and dearness allowances of that member for three months or up to seventy-five per cent. of the amount standing to his credit in the Fund, whichever is less.”.

[F. No. S-35012/01/2020-SS-I I (Pt.)]

R. K. GUPTA, Jt. Secy.

Note : The Employees’ Provident Funds Scheme, 1952 was published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i) vide number S.R.O. 1509, dated the 2nd September, 1952 and was last amended vide number G.S.R. 284(E), dated the 4th April, 2019.

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2 Comments

  1. AMK says:

    Can pl someone clarify (with confirmation/authenctic source) as to whether this withdrawal be taxable in case of less than 5 years service?

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