Online Steps to withdraw 75% of Employer Provident Fund as directed by Govt in outbreak COVID-19

The Government has inserting Sub-Para (3) under Para 68L of the EPF Scheme, 1952 to provide for non-refundable advance to EPF members in the event of outbreak of pandemic CVOID-19

FAQ on withdrawal of EPF – CVOID-19

1) How Much one can withdraw from EPF in pandemic CVOID-19

EPF members not exceeding the basic wages and dearness allowances for three months or upto 75% of the amount standing to member’s credit in the EPF account in the event of outbreak of pandemic CVOID-19

The COVID-19 has been declared a Pandemic by appropriate Government for the entire country and therefore the employees working in Establishments and factories across entire India, who are members of the EPF Scheme, 1952, are eligible for the benefits of non-refundable advance under the sub-para (3) of Para 68L which has come into force from today (28.03.2020)

The eligible Amount will be upto 75% of PF balance (Employee share and Employer Share) or 3 months PF wages or the claimed amount by the member whichever is the least.

2) What is prerequisite to apply online in EFP Govt portal?

There are 3 requirements, UAN should be activated, Verified Aadhaar should be linked with UAN and Bank Account with IFSC code should be seeded with UAN

3) How to file online advance claim for the purpose “Outbreak of pandemic (COVID-19)”

1. Login to Member Interface of Unified Portal (https://unifiedportal-mem.epfindia.gov.in/memberinterface/)

2. Go to Online Services>>Claim(Form-31,19,10C & 10D)

3. Enter last 4 digits of your Bank Account and verify

4. Click on “Proceed For Online Claim”

5. Select PF Advance (Form 31) from the drop down

6. Select purpose as “Outbreak of pandemic (COVID-19)” from the drop down

7. Enter amount required and Upload scanned copy of cheque and enter your address

8. Click on “Get Aadhaar OTP”

9. Enter the OTP received on Aadhaar linked mobile.

10. Claim is submitted

4) Can you file claim through my mobile phone?

Yes, from your mobile phone you can either

i) login to (https://unifiedportal-mem.epfindia.gov.in/memberinterface) and follow steps as above in question 3

ii) Through UMANG (Unified Mobile Application for New-age Governance) Mobile APP Home> EPFO> Employee Centric Services> Raise Claim> Login with your UAN and OTP received on your mobile number registered with UAN to file claim

5) Who is eligible for the advance from EPF to fight COVID-19 Pandemic?

Any member of EPF Scheme, 1952 with UAN (Universal account number) employed in any establishment or factory covered under EPF & MP Act, 1952.

6) How can you know whether establishment/factory in which you are employed is in an area declared to be affected by COVID-19 pandemic?

Since COVID-19 has been declared a Pandemic by the Appropriate Government for the entire country and therefore the employees working in establishments and factories across entire India, who are members of the EPF Scheme, 1952, are eligible

7) Is EPF member required to produce any certificate or document for availing this advance?

No certificate or documents are to be submitted by member or his/her employer for availing the benefit.

8) How much money can you get from your EPF account under this new provision to fight COVID-19 and do you have to refund it?

You can get 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 your credit in the EPF account, whichever is less. Since withdrawal is non-refundable, there is no requirement to refund the amount.

9) Please illustrate the calculation of benefits

If the balance in member’s EPF account as on date is Rs.50,000/- and monthly basic wage and dearness allowance is Rs.15,000/-

75% of balance of Rs.50000/- is Rs.37,500/- & amount of three months wage is Rs.45000/-. So member is eligible to get Rs.37,500/- the least of two amounts.

10) What is Tax Implication on the withdrawl?

The CBDT has not came out with guidelines, However from source based information it seems it would be exempted and notification for same will be issued