Labor Ministry approves withdrawal of funds from EPF amid lockdown

Labour Ministry allows EPF withdrawal, 6 crore employees will benefit

It was announced by Nirmala Seetharan, Union Finance Minister, last week under an incentive package of Rs 1.7 lakh crore for various sectors.

The finance minister, Nirmala Seetharan, recently announced relief. The COVID-19 has been declared pandemic.

In the midst of restrictions related to the COVID-19 corona virus, the Union Ministry of Labor has allowed more than 6 crore members of Employees’ Provident Fund Organisation (EPF) scheme to withdraw money from their accounts.

According to the ministry, in the notification, it has been allowed to withdraw the basic salary and dearness allowance of three months or 75 percent of the amount lying in the EPF account, whichever is less.

As per the notification issued, the amount of withdrawal sanctioned from EPF account should not exceed the sum of basic salary of three months and dearness allowance of the shareholder or three quarters of the total amount deposited in his account, whichever is less.

To prevent the COVID-19 corona virus epidemic, this step has been taken to provide relief to people due to ‘lockdown’. There will be no need to return this amount.

The Ministry of Labor said that the Ministry issued a notification in this context on 28 March 2020, regarding the amendment in the Employees Provident Fund Scheme 1952.

The corona virus has been declared an epidemic and hence employees working in factories and various establishments across the country under the EPF scheme are eligible to withdraw this amount.