EPF withdrawal: 12 lakh EPFO subscribers opt for special coronavirus scheme
1 min read 17 May 2020, 11:30 AM ISTRetirement fund body EPFO has decided not to impose any penalty for delay in payment of employees' provident fund contributions by firms during the natiowide lockdown
PremiumUnder the coronavirus special EPF withdrawal scheme, about 12 lakh employees have availed this scheme and about ₹3,600 crore has been disbursed so far by the EPFO. This was disclosed by Finance Minister Nirmala Sitharaman said.
Under this scheme, Employees Provident Fund Organisation subscribers can withdraw 75% of their savings or up to a maximum of three months' basic pay and dearness allowance from their PF account – whichever is lower.
On March 28, the EPFO had allowed formal sector workers under its ambit to withdraw a non-refundable advance from their retirement savings to deal with hardships due to lockdown.
Earlier this week, Finance Minister Nirmala Sitharaman had announced a reduction of statutory provident fund contribution by both employers and employees to 10% of basic wages from the existing 12% for the next three months.
The decision was taken to facilitate more take-home salary for employees and give relief to employers in payment of PF dues.
The decision is expected to benefit 4.3 crore employees and 6.5 lakh employers reeling under liquidity crunch due to COVID-19 lockdown.
Retirement fund body EPFO has decided not to impose any penalty for delay in payment of employees' provident fund contributions by firms during the natiowide lockdown.
Since the imposition of lockdown on March 25 by the government to contain the COVID-19 spread, businesses have been facing liquidity or cash crunch, leading to difficulties in paying their mandatory provident fund dues.
Employers are required to deposit dues on a month's salary by 15th of the next month. However, they get 10 days grace for payment after that.
(With Agency Inputs)
