EXPLAINED | Can you still avail COVID advance? Possible to do it twice?
To counter the financial strains caused by the pandemic, the government introduced an online facility for EPF withdrawal in 2020, allowing members to avail up to three months' basic wages or 75 per cent of their EPF account balance. This beneficial provision allowed salaried employees to withdraw a non-refundable advance from their EPF accounts during the Covid-19 pandemic period.
In the wake of financial difficulties due to the job losses and disruptions caused during the Covid-19 pandemic, the Indian government had allowed withdrawals from Employees' Provident Fund (EPF) accounts starting March 2020, and permitted a second non-refundable advance in May 2021.
The Employees' Provident Fund Organisation (EPFO), under the Ministry of Labour and Employment, administers the EPF Scheme. This retirement benefit scheme mandates both employees and employers to contribute 12 per cent of the basic salary and dearness allowance. It not only serves as a tax-saving instrument but also offers higher interest rates on investments, making it a preferred choice for many.
To counter the financial strains caused by the pandemic, the government introduced an online facility for EPF withdrawal in 2020, allowing members to avail up to three months' basic wages or 75 per cent of their EPF account balance. This beneficial provision allowed EPF members to withdraw a non-refundable advance from their EPF accounts during the pandemic-affected period.
The second EPF COVID advance
In response to the economic impact of the second wave of the pandemic, the EPFO permitted over 5 crore subscribers to avail a second Covid-19 advance. This was in addition to the first advance that many had already availed. Under this scheme, approximately 76.31 lakh applicants availed the Covid-19 advance, amounting to a total withdrawal of Rs 18,698.15 crore.
EPF COVID advance: How many times can you avail it?
In response to the question of how many times one can avail the EPF COVID advance, the EPFO has clarified that each advance is available only once. Even if there is a balance remaining in the EPF account after the first withdrawal further withdrawal will not be allowed.
Last date for applying for COVID advance
There is no definitive end date for availing the EPF COVID advance. As per the latest information, the facility for availing this advance will remain available as long as the COVID-19 pandemic prevails.
Individuals who have left service but have not yet withdrawn their final PF benefits can still avail the COVID advance. As long as the PF funds are not withdrawn, the individual remains a PF member and is eligible for the advance.
Applying for COVID advance in the case of pending advances
If a PF member has applied for an advance due to illness or any other reason, and the application is still pending, they are still eligible to apply for the COVID-19 advance. The provision for the pandemic-related advance does not consider the pendency of any other advances, allowing members to avail of the COVID advance even if other withdrawals are still under process.
Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.
RECOMMENDED STORIES
Senior Citizen Latest FD Rates: Know what major banks like SBI, PNB, Canara Bank, HDFC Bank, ICICI Bank are providing on fixed deposits
Gratuity Calculator: Rs 38,000 as last-drawn basic salary, 5 years and 5 months of service; what will be gratuity amount?
Retirement Planning: In how many years your Rs 25K monthly SIP investment will grow to Rs 8.8 cr | See calculations
Top 5 Small Cap Mutual Funds with best SIP returns in 1 year: See how Rs 25,000 monthly investment has grown in each scheme
Top 7 SBI Mutual Funds With Best SIP Returns in 1 Year: Rs 25,000 monthly SIP investment in No.1 fund has jumped to Rs 3,58,404
SBI 5-Year FD vs MIS: Which can offer higher returns on a Rs 2,00,000 investment over 5 years? See calculations
01:12 PM IST