The EPFO has released a set of frequently asked questions (FAQs) for the benefit of those who wish to avail the PF advance. Before applying, it’s important to know how much can be withdrawn, will your company be eligible and the amount be taxable? Being an advance,the employee need not have to put the money back into the provident fund (PF) account.
The government had earlier relaxed the EPFO rules regarding the withdrawal of PF money keeping the difficulties employees may face during the lockdown because of the Coronavirus pandemic.
The new PF advance or PF withdrawal rule will apply to all establishments across the country. This is because COVID-19 has been declared a pandemic by appropriate authorities for the entire country and, therefore, 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.
As per the notification, the employee is permitted to make PF withdrawal of up to the amount of basic wages and dearness allowance for 3 months or up to 75 per cent of the amount standing to member’s credit in the EPF account, whichever is less. The PF balance includes employee and the share of employer including the interest earned on their contributions. To avail the PF advance, the employee need not show any document or certificate to the EPFO.
For example, if the PF balance of an employee is Rs 50,000 and his or her basic salary plus DA is Rs 15,000 per month, then the PF advance of Rs 37,500 may be withdrawn by the employee.
To apply for PF advance, an employee can log on to the EPF India website or even access the Unified Portal from one’s phone…Read more>>
Source:-techiyogiz
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