New Delhi: Since the beginning of the month of April, Employee Provident Fund Organization (EPFO) has witnessed an increase in EPF withdrawal. The subscriber of the fund has withdrawn over Rs 30 thousand crores.
The withdrawal between April and the third week of July is abnormally high when compared to the withdrawal over similar periods.
Why EPF withdrawal increased?
The fund linked the withdrawal with coronavirus pandemic and its effect. Due to the pandemic, many employees either lost their jobs or witnessing salary cuts.
Medical expenses can be another reason for the spike in the withdrawal.
Govt relaxed withdrawal rules
Earlier, in the wake of coronavirus outbreak, the Central government has notified amendment to the EPF Scheme to allow the withdrawal of non-refundable advance by the members.
The notification GSR 225(E) amends the EPF Scheme 1952 to allow the withdrawal of non-refundable advance by EPF members in the wake of COVID-19 pandemic in the country.
It also permits withdrawal not exceeding the basic wages and dearness allowance for three months or up to 75 percent of the amount standing to member’s credit in the EPF account in the event of a pandemic.
Last week, in the meeting, the Capital Management and Audit Committee of the fund gave details of the withdrawal to its members.