EPFO Discontinues Covid-19 Advances under Para 68L of EPF Scheme

Circular on Discontinuation of Covid-19 Advances under Para 68L of EPF Scheme

Introduction

The Employees' Provident Fund Organisation (EPFO) has recently issued a circular (No. WSU/2020/COVID-19/AgendaItem/1701) announcing the discontinuation of Covid-19 advances under Para 68L(3) of the EPF Scheme, 1952. This update comes as Covid-19 is no longer classified as a pandemic, leading to significant changes for EPF members and exempted trusts. This blog post aims to provide a clear and comprehensive understanding of this new directive and its implications.

Background of Covid-19 Advances

During the outbreak of the first and second waves of Covid-19, the EPFO introduced a provision under Para 68L(3) of the EPF Scheme, 1952, allowing EPF members to withdraw a non-refundable advance. This measure was intended to provide financial relief to employees during the challenging times brought by the pandemic.

Key Details of the Circular

1. Discontinuation of Advances

• The EPFO has decided to discontinue the provision of Covid-19 advances with immediate effect. This decision is based on the current status of Covid-19, which is no longer considered a pandemic.

• The circular references the initial notification GSR.225(E) dated 27.03.2020 and the subsequent provision for additional advances from 31.05.2021.

2. Applicability to Exempted Trusts

• The discontinuation of Covid-19 advances applies not only to EPF members but also to exempted trusts.

• All regional offices, zonal offices, and district offices are instructed to inform the trusts within their jurisdictions about this change.

3. Immediate Implementation

• The directive is issued with immediate effect, meaning that no further Covid-19 related advances will be processed under Para 68L(3).

Implications for EPF Members and Trusts

For EPF Members:

• EPF members will no longer be able to withdraw the non-refundable advances specifically allowed for Covid-19.

• Members need to be aware of this change and plan their finances accordingly.

For Exempted Trusts:

• Exempted trusts must comply with this new directive and ensure no Covid-19 advances are processed moving forward.

• Trusts should communicate this change to their members to avoid any confusion or non-compliance issues.

Conclusion

The discontinuation of Covid-19 advances under Para 68L(3) marks a significant shift as the world transitions out of the pandemic phase. EPF members and exempted trusts need to stay informed about these changes to ensure compliance and proper financial planning. This circular highlights the EPFO's ongoing efforts to adapt to the current situation and provide clear guidance to its stakeholders.

Please refer circular for more details.

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