Around 75 per cent of the Covid-19 advance withdrawals belonged to workers
earning less than Rs 15,000 a month. Firms with at least 20 workers have to compulsorily contribute towards the EPF of their workers who earn up to Rs 15,000 a month.
“Timely availability of PF advances prevented many low wage earners from falling into debt, providing social security support to the weakest section of workforce during these adverse times,” the labour ministry stated.
However, there was a 35 per cent decline in the final EPF settlement claims in April-August, 2020 compared to the same period last year, even as partial withdrawals of PF money “more than doubled”. “Final PF Settlement claim allows members to withdraw their PF balance after quitting their job, superannuation, termination or at the time of retirement,” the ministry said. The EPFO
has roughly 60 million subscribers.
*9.4 million claims worth Rs 35,445 crore settled by EPFO
during April-August 2020 compared to 6.4 million claims in same period last year
*Around 55% of EPF claims claims were related to the Covid-19 special advance withdrawal window launched in April
*75% of the COVID-19 advance withdrawals belonged to workers earning less than Rs 15,000 a month
*Partial withdrawal of EPF money doubled in April-August 2020 compared to same period last year
*35% dip in final settlement of EPF money which takes place in case of no job or at the time of retirement