On the second day of the 21-day lockdown due to Coronavirus outbreak, Finance Minister Nirmala Sitharaman announced an economic relief package that lays out various schemes to provide cash and free ration. The government also relaxed the rules for withdrawal of funds from the Employees’ Provident Fund (EPF) account.
- Relaxation in the EPF withdrawal rules.
- Employee and employer both contributions to be paid by the Government for certain establishments.
- Non-refundable advance to EPF account holder.
Finance Minister announced that due to the pandemic situation, the government will relax the Employees’ Provident Fund (EPF) withdrawal rules to enable easier access to the money and also pay both the employer and employee contribution to the EPF accounts of certain establishments for the continuity of the account for the next 03 months.
This scheme will be applicable for establishments with up to 100 employees, where 90% of employees drawing less than Rs 15,000 salary.
As per the announcement, now an EPF account holder will be able to withdraw up to 75% of the balance or three months of wages, whichever is lower, as non-refundable advance.
Currently, non-refundable advances are permitted only for specified purposes such as housing, marriage, etc.
As per the press announcement, these will come into effect from April 1, 2020.
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