CA. Mohit Kumar
The Labour ministry issued a press release dated 31-5-2021 to allow withdrawal of advance. The brief details are as under-
1. EPFO allows its members to avail second COVID-19 advance. This decision was taken in view of the second wave of the Covid-19 pandemic
The labour ministry has announced that EPF members can now avail a second non-refundable advance from their EPF accounts in order to meet the coronavirus related financial emergencies. Earlier, only a one-time advance was available for EPF members. The press release issued are hereunder-
To support its subscribers during the second wave of COVID-19 pandemic, EPFO has now allowed its members to avail second non-refundable COVID-19 advance. The provision for special withdrawal to meet the financial need of members during pandemic was introduced in March 2020, under Pradhan Mantri Garib Kalyan Yojana (PMGKY). An amendment to this effect was made by Ministry of Labour & Employment in Employees' Provident Funds Scheme, 1952 by inserting therein sub-para (3) under paragraph 68L, through notification in the Official Gazette.
Under this provision, non-refundable withdrawal to the extent of the basic wages and dearness allowances for three months or up to 75% of the amount standing to member's credit in the EPF account, whichever is less, is provided.
Members can apply for lesser amount also.
The COVID-19 advance has been a great help to the EPF members during the pandemic, especially for those having monthly wages of less than Rs. 15,000. As on date, EPFO has settled more than 76.31 lakh COVID-19 advance claims thereby disbursing a total of Rs. 18,698.15 crore.
During the second wave of Covid-19 pandemic, 'mucormycosis' or black fungus has been declared an epidemic recently. In such trying times, EPFO endeavours to lend a helping hand to its members by meeting their financial needs. Members who have already availed the first COVID-19 advance can now opt for a second advance also. The provision and process or withdrawal of second COVID-19 advance is same as in the case of first advance.
Considering urgent need of members for financial support in these trying times, it has been decided to accord top priority to COVID-19 claims. EPFO is committed to settle these claims within three days of their receipt. For this, EPFO has deployed a system driven auto-claim settlement process in respect of all such members whose KYC requirements is complete in all respects. Auto-mode of settlement enables EPFO to reduce the claim settlement cycle to just 3 days as against the statutory requirement to settle the claims within 20 days.
2. Recent Decision taken by Labour Ministry regarding of authentication of Aadhaar in PF account
The employer has now been assigned with the responsibility of ensuring that their employees link their PF account to their Aadhaar cards, and failure to do so will result in the employer's contribution being stopped from going into the employee's account.
As section 142 of social security code 2020, with effect from 1-6-2021, if PF account is not verified through Aadhaar authentication or UAN not verified then employer will not be able to generate/file electronic challan cum return
If they fail to do so can lead to the stoppage of employer contribution credited to employee account. Therefore, it is important that you link your PF account with Aadhaar in time also verified with UAN
Disclaimer: Every care has been taken in the preparation of this article to ensure its accuracy. The views contained in this article are personal and the contents of this document are solely for informational purpose and it does not constitute professional advice that may be required before acting on any matter.
To read the official press release by the Labour Ministry, click here
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