The Employees Provident Fund Organization (EPFO) has updated its rules for withdrawing advances from the Employees Provident Fund (EPF).
Effective immediately, the EPFO has decided to stop offering the COVID-19 advance. This special advance was initially provided during the first wave of the COVID-19 pandemic and extended on May 31, 2021, during the second wave.
COVID-19 No Longer Considered a Pandemic
According to a circular issued by the EPFO on June 12, 2024, COVID-19 is no longer classified as a pandemic.
Consequently, the authorities have decided to cease the COVID-19 advance with immediate effect. This change applies to all EPF trusts, which have been duly informed.
Previous COVID-19 Advance Provisions
Under the Pradhan Mantri Garib Kalyan Yojana (PMGKY), the provision for EPF members to withdraw money was first announced in March 2020.
In June 2021, the Ministry of Labour allowed EPF members to avail of a non-refundable advance to address financial emergencies related to the coronavirus.
This provision was available as a one-time advance until the latest circular, dated June 12, 2024, declared the end of this facility.
Current Rules for EPF Withdrawals
EPFO members can still withdraw advances for various purposes. The current rules allow members to withdraw up to three months’ basic salary and dearness allowance or 75% of the amount available in the EPF account, whichever is lower.
Members can also apply for smaller amounts if needed. Advances can be claimed for purchasing a house, repaying a home loan, marriage, and education.
