Guidelines for Withdrawal of EPF Contribution During the COVID-19 Pandemic

The Employees' Provident Fund Organization (EPFO) released a set of detailed FAQs on April 26, 2020, regarding the withdrawal of EPF as a COVID-19 advance. These guidelines are particularly useful if you are seeking to withdraw from your Employee Provident Fund (EPF) to support yourself financially during these times.

Withdrawal Eligibility and Guidelines

The government has amended the EPF withdrawal rules to allow an EPF member to withdraw a certain amount in case of emergency due to the COVID-19 pandemic. According to the amendments, individuals can withdraw an amount equal to three months of basic salary and dearness allowance (DA) or 75 percent of the credit balance in the account, whichever is lower.

Calculation of Eligible Amount

Suppose your basic salary and DA received per month is Rs 40,000 and the EPF balance in your account is Rs 3 lakhs (100,000 * 3). The amount you are eligible to withdraw is calculated as follows:

Three months of basic and DA: Rs 1,20,000 (Rs 40,000 * 3) 75 percent of the EPF balance: Rs 2,25,000 (75% of Rs 3 Lakh)

You are eligible for the lower of these two amounts, which in this case is Rs. 1,20,000.

It is important to note that the amount withdrawn due to the outbreak of the COVID-19 pandemic is non-refundable. Thus, you are not required to refund or repay the withdrawn amount back into your EPF account.

Applying for PF Advance

To apply for a PF Advance, follow these steps:

Login to the Member Interface of the Unified Portal. Go to Online Services and then click on Claim Form 311910C/10D. Enter the last 4 digits of your Bank Account and verify. Click on “Proceed for Online Claim.” Select PF Advance Form 31 from the drop-down. Select the purpose as “Outbreak of Pandemic COVID-19” from the drop-down. Enter the amount required and upload a scanned copy of the cheque. Enter your address. Click on “Get Aadhaar OTP.” Enter the OTP received on your Aadhaar-linked mobile. Claim is submitted.

Additional Requirements

To apply for a PF advance, you must meet the following criteria:

Your Universal Account Number (UAN) must be activated. Your Aadhaar number should be verified and linked with your UAN. Your bank account with IFSC should be connected with your UAN.

Conclusion

These guidelines are designed to provide financial support to EPF members during the ongoing pandemic. Understanding the eligibility criteria and the application process can help you access the necessary funds to tide over financial hardships.