EPFO extends its helping hands in the time of COVID-19

Admin

EPF member can withdraw an amount equal to three months of basic wages and dearness allowance or 75% of the credit balance, whichever is lower

A Press Conference was held in the EPF office, Patna in Conference Room on 4th May 2020. The Press Conference was presided by Brajesh Kumar, Regional Provident Fund Commissioner II and Ravi Kant Sinha, Public Relation Officer.

They informed that the Employees’ Provident Fund Organisation (EPFO) has always extended its helping hands to the Employers and the Employees during the times of need.

In continuation to the same, the EPFO has taken following timely initiatives to help the employers as well as the employees.

The Government of India has launched the Pradhan Mantri Gareeb Kalyan Yojana (PMGKY) whereby in order to prevent disruption in the employment of low wage earning employees and support establishments employing up to one hundred employees.

The entire employees’ EPF contributions (12% of wages) and employers’ EPF & EPS contribution (12% of wages).

Total 24% of the monthly wages for the next three months shall be directly paid by the Central Govt. in the EPF accounts (UAN) of employees, who are already members of EPF Scheme, 1952.

Drawing wages less than Rs.15000/- per month and employed in establishments, already covered under the EPF & MP Act, 1952, employing up to one hundred employees, with 90% or more of such employees earning less than Rs.15,000/- monthly wages.

This PMGKY scheme is applicable for the month of March, April and May 2020 only.

Further, the EPFO has given the benefit of only filing the ECR, and doing the payment at a later stage due to cash flow deficiency because of the Pandemic.

The EPFO has also extended the date for payment of statutory dues in view of the COVID-19 crisis.

There shall be no penal damages levied if payment is made within extended time given by central government.

The Government has notified amendment in the EPF rules regarding withdrawal of funds from EPF account in view of COVID-19.

According to the amended rules, an EPF member can withdraw an amount equal to three months of basic wages and dearness allowance (DA) or 75% of the credit balance in the account, whichever is lower.

This facility is available online and the Claims under this category are settled on priority within 3 days.