EFPO: EPF subscribers can withdraw basic salary and dearness allowance for three months or up to 75% of the amount deposited in the EPF account (whichever is less) of the member.
Employees’ Provident Fund Organization (EPFO) has allowed individual members to take advantage of the Kovid Advance Service even after leaving the job. According to the EPFO, if someone has lost his job and is yet to join any other company, then some part of the PF fund can still be withdrawn as Kovid Advance facility. Being an advance, the employee is not required to put the money back in the Provident Fund (PF) account.
EPFO has specific PF advance rules, forms and procedures for availing such advances, including COVID-19. EPF subscribers can withdraw basic salary and dearness allowance for three months or up to 75% of the amount deposited in the EPF account, whichever is less.
Income tax not applicable on advance
PF balance includes employee’s contribution and employer’s share, including interest earned on their contribution. To apply for PF Advance, an employee has to login to the EPF India website or Unified Port from his phone. You can apply for this advance even if you have received PF advance earlier for medical or any other eligible needs. Also, EPFO has said that income tax is not applicable on any advance received under the EPF scheme.
KYC to be completed
However, if the KYC is not updated, then even after applying, advances cannot be received. If you are applying PF advance online then it can be done only if your UAN is linked with Aadhaar and KYC and mobile number of bank account is linked in UAN. If this is not done, then you will have to complete your KYC by submitting your KYC on the member portal.
Settlement within 3 days of claim
EPFO has put in place a system driven auto-claim settlement process in respect of all such members whose KYC requirements are complete in all respects. Auto-mode system has been created for settlement of claims. Earlier, where EPFO had to settle claims within 20 days, now settlement is becoming possible in just 3 days.
