Coronavirus Impact: Govt allows EPFO subscribers to withdraw 75 per cent non-refundable PF advance
New Delhi | Jagran Business Desk: What comes as a big relief for the employees, Finance Minister Nirmala Sitharaman on Thursday said that the provident fund (PF) schemes regulation will be amended to allow withdrawal of non-refundable advance of up to 75 per cent of the amount or three months' wages (whichever is lower), as reported by news agency ANI.
"Govt ready to amend the regulation of EPF due to this pandemic so that workers can draw up to 75% non-refundable advance from credit in PF account or 3 months salary, whichever is lower," Sitharaman said as quoted by ANI
The move would benefit 4.8 crore employees.
Besides this, the Finance Minister also added that the government would also pay the Employees' Provident Fund(EPF) contribution of both employer and employee, put together it will be 24 per cent for the next three months.
"This is for those establishments which have up to 100 employees and 90 per cent of them earn less than 15,000," ANI quoted Nirmala Sitharaman as saying.
The decisions come as a major relief for the working class and the private companies which would go through financial stress amid the 21-day nationwide lockdown.
Sitharaman also announced a slew of measures including easing minimum balance norms for savings account, extension of tax deadlines and increasing threshold of insolvency filing from Rs 1 lakh to Rs 1 crore.
Nirmala Sitharaman also announced a Rs 50 lakh per person health insurance cover for the doctors, nurses, paramedics, 'Asha', and cleaning workers who have been involved in the fight against coronavirus pandemic and treating the affected patients.
She also announced an economic relief package of Rs 1.7 lakh crore for the poor and migrant workers under the Pradhan Mantri Gareeb Kalyan Yojana.
(with agency inputs)
Posted By: James Kuanal