Amidst the COVID-19 outbreak in India, what can be perceived as a much needed relief to the employees, the Ministry of Labour and Employment vide a notification dated March 27, 2020 has notified the Employees` Provident Funds (Amendment) Scheme, 2020 (“Amendment Scheme”).
The Amendment Scheme introduces a new paragraph to paragraph 68L [after sub-paragraph (2)] of the Employees` Provident Fund Scheme (“EPF Scheme”), 1952, permitting the Commissioner or any officer subordinate to him, to allow, a non-refundable advance from the provident fund account of a member of the EPF Scheme. However, the Amendment Scheme also provides that such an advance should not exceed the basic wages and dearness allowances of that member for three months or up to 75 % (seventy-five per cent) of the amount standing to his credit in the EPF Scheme, whichever is less.
Read the notification here and the FAQ issued by the EPFO here.
This update has been contributed by Arka Majumdar (Partner) and Kunal Dey (Associate).
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