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Labour Ministry relaxes EPF withdrawal rules amid coronavirus lockdown

The Labour Ministry notification permits withdrawal of up to the amount of basic wages and dearness allowance for three months or up to 75% of the amount standing to member's credit in the EPF account

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The Centre has allowed over 6 crore subscribers of retirement scheme Employees Provident Fund to withdraw an amount not exceeding their three months basic pay and dearness allowance or up to 75% of the total balance from their EPF account in view of the lockdown over coronavirus outbreak. 

The Union Ministry of Labour and Employment has issued a notification regarding the amendment in the EPF Scheme to allow withdrawal of non-refundable advance by EPF members in the event of the outbreak of the 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 ministry said in a press release. 

The notification permits withdrawal of up to the amount of basic wages and dearness allowance for three months or up to 75% of the amount standing to member's credit in the EPF account, whichever is less, in the event of the outbreak of epidemic or pandemic, it said. 

Coronavirus disease or COVID-19 has been declared a pandemic by the World Health Organisation and the authorities in India. 

Therefore, the amendment allows 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, the Labour Ministry said. 

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 March 28, 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.

Prime Minister Narendra Modi on Tuesday on Tuesday announced a nationwide lockdown to combat the novel coronavirus outbreak. The Centre has announced several measures and relief to ease the problems of people amid lockdown.

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