About 30% claim settlement has been done under Kovid-19 PF Advance.
PF Withdrawal: Due to loss of job or loss of income during Kovid-19 crisis, the employees who have received a large amount of salary have withdrawn money from their PF account. The government also gave permission to withdraw money from the PF account under a special window.
- January 20, 2021, 12:09 PM IST
Between April-December 2020, about 30% of the total subscribers who withdraw money from their PF account have withdrawn through Kovid-19 Advance. The government had given a waiver to organized employees under a special window that they could withdraw 75 percent of their total savings or an amount equal to three months salary. His basic, and dearness allowance included his three-month salary.
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Mint has quoted government officials in one of its reports that 50.68 lakh workers took the Kovid-19 advance directly from the EPFO. However, 4,19,762 people have withdrawn their money through EPF Exposed Trust. Overall, by December 31, around 61 lakh subscribers have withdrawn Rs 18,290 crore from their provident fund.For what reasons were these money withdrawn
Information given by the EPFO to the Central Board of Trustees (CBT) through a letter shows that the main reason for all these 2 crore settlements has been ‘Final Sentiment’, ‘Death Insurance’ and ‘Advance Claims’. However, apart from Kovid related withdrawal, no other detailed information has been given by EPFO. Explain that when an EPFO subscriber retires or withdraws all his money after being unemployed for a few months, then it is called Final Settlement. Till August, the employees who received about 2.1 crore salary had to lose their jobs. There were a total of 8.6 crore salaried jobs in India during 2019-20. Last September, a report by the Center for Monitoring Indian Economy (CMIE) shows that in August 2020 the number came down to 6.5 crores.
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What does this mean?
On one hand, it is clear from these figures of PF Claim Settlement that how promptly the Employees Provident Fund Organization has supported its subscribers. On the other hand, this data also points towards the financial problem of the class of salaries in the Corona period. The EPFO has written in a letter to CBT that, ‘Under the Pradhan Mantri Garib Kalyan Yojana, Rs 14,310.21 crore have been withdrawn under the Kovid-19 PF Advance till 31 December 2020 in 56.79 lakh claims.