FAIEO Circular: Permit to Non-refundable Advance from EPF Balance.

Dear Members, We would like to bring to your notice that in order to help employees to tide over their liquidity issues during the lockdown period Employment Provident Fund (EPF) Rules has been eased by the Government of India.

The Ministry Of Labour and Employment has introduced the Employees’ Provident Funds (Amendment) Scheme, 2020 vide G.S.R. 225(E) dated 27th March, 2020. 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 has inserted the following :

Employees’ Provident Funds Scheme, 2020, 68(L)(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.

In simple terms, this means Employment Provident Fund (EPF) subscribers can withdraw 75% of their PF balance or 3 month wages as a non-refundable advance, whichever is lower. The Finance Minster has stated, “The Government of India will pay the Employees' Provident Fund (EPF) contribution, both of employer and employee, put together 24% of an employee's salary, for next 3 months. This is applicable for those establishments which have up to 100 employees and 90% of them earn less that ₹15,000.”

Regards, Dr. Gubbi S Subba Rao.


Circular copy

https://mailchi.mp/e1a6218ebcbf/permit-to-non-refundable-advance-from-epf-balance




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