Employees of government and registered companies will no longer be able to withdraw COVID-19 advance from EPF i.e. Employees Provident Fund account. EPFO has discontinued this facility. The government had given the facility of advance withdrawal to the employees from their PF account during the Corona epidemic. EPFO said in its circular, ‘Since COVID-19 is no longer an epidemic, it has been decided to stop this facility of giving advance with immediate effect. This order will be applicable to all including exempted trusts.’ The government had started the facility in March 2020 EPFO had given the facility of withdrawing advance under Pradhan Mantri Garib Kalyan Yojana (PMGKY) for the first time in March 2020 during the first wave of Corona. Under this, the employee could withdraw up to 75% of the balance in his EPF account or the amount equal to the basic salary and dearness allowance deposited in his EPF account. When can advance funds be withdrawn from the PF account? Employees can withdraw advance PF during a big project or other emergency… How much advance can be withdrawn during an emergency? You can withdraw 75% of your PF money after one month of job loss As per PF withdrawal rules, if a member loses his job, he can withdraw 75% of his PF money after one month. With this, he can fulfil his needs during unemployment. The remaining 25% of the PF deposited in the account can be withdrawn after two months of job loss. Do not withdraw money from EPF fund unless it is very necessary Money management experts believe that one should avoid withdrawing money from EPF unless it is very necessary. It is getting interest at the rate of 8.15%. The bigger the amount withdrawn from EPF, the bigger will be the impact on the retirement fund. According to estimated calculations, if you have 30 years left for your retirement and you withdraw Rs. 10,000 from your EPF account right now, then it will have an impact of Rs. 1 lakh 14 thousand on your retirement fund. That means you will get this much less money at the time of retirement. Also read this news… Now EPF claim will be settled in 3 days: Facility will be available only for medical, education, marriage and housing purposes, earlier it used to take 15-20 days. Some withdrawal claims of Employees Provident Fund (EPF) will now be settled in just 3 days. EPFO has introduced auto-mode settlement for advance claims for medical, education, marriage and housing purposes. This will eliminate human intervention and speed up processing. Click here to read the full news…
