The decision was made in light of the second wave of the Covid-19 outbreak, according to the Union government; EPFO says it will settle these claims within three days of receipt.
EPFO said on Monday that its members can now get a second non-refundable Covid advance to help them through the second wave of the Covid epidemic stated the government Under the Pradhan Mantri Garib Kalyan Yojana, a mechanism for extraordinary withdrawal to support members’ financial needs during a pandemic was implemented in March 2020. (PMGKY). The Ministry of Labour & Employment amended the Employees’ Provident Funds Scheme, 1952 to this effect.
This provision allows for non-refundable withdrawals up to 75 percent of the amount remaining to the member’s credit in the EPF account or the basic salary and dearness allowances for three months, whichever is less. Members can also apply for a smaller sum.
“During the epidemic, the Covid-19 advance has been a big benefit to EPF members, especially those with monthly incomes of less than Rs 15,000,” said the Ministry of Labour and Employment. EPFO has settled over 7.6 million Covid advance claims to date, resulting in a total payout of Rs 18,698.15 crore.
“Mucormycosis, or black fungus, was recently proclaimed an epidemic during the second wave of the Covid-19 pandemic. EPFO tries to provide a helping hand to its members by satisfying their financial needs in these challenging times. Members who have previously taken advantage of the Covid-19 advance can now take advantage of a second advance. The provision and procedures for withdrawing the second Covid-19 advance are the same as for the first advance, according to the ministry.
Due to the urgent need for financial assistance among members during these challenging times, it has been agreed to give Covid claims high priority. EPFO stated that it will settle these claims within three days of receiving them. EPFO has implemented a system-driven auto-claim settlement mechanism for all such members who have completed their KYC criteria in all aspects. The EPFO’s auto-mode of settlement allows it to decrease the claim settlement cycle to just three days, as opposed to the statutory requirement of 20 days.