NEW DELHI: About 8.2 lakh of members of the retirement fund body EPFO and private PF trusts have dipped into their savings and withdrew Rs 3,243.17 crore to stay in the government-imposed shutdown to contain COVID-19.
Earlier last month, on March 28, the Employee Provident Fund Organization (EPFO) had allowed formal sector workers under its umbrella to withdraw a non-refundable advance from their retirement savings to deal with difficulties due to to blocking.
"EPFO under the Union Ministry of Labor and Employment has resolved a total of 12.91 lakhs of claims, including 7.40 lakhs of COVID-19 claims under the Pradhan Mantri Garib Kalyan Yojana (PMGKY) package," said a statement from the ministry of job.
The settlement of claims involves the disbursement of the total amount of Rs 4,684.52 crore, which includes Rs 2,367.65 crore COVID under the PMGKY package.
Private exempt PF trusts have also increased amid the COVID-19 pandemic, the ministry said.
As of April 27, 2020, FP-exempt Trusts under this scheme have disbursed Rs 875.52 million to 79,743 FP members in advance for COVID-19, with 222 private-sector establishments disbursing Rs 338.23 million to 54,641 beneficiaries, disbursing 76 public sector establishments Rs 524.75 million to 24,178 beneficiaries and 23 cooperative sector establishments that disburse Rs 12.54 million to 924 claimants, he said.
Private PF trusts manage the PF money of their employees and account for themselves. They are exempt from filing a monthly FP statement and are therefore also called exempt establishments.
Tata Consultancy Services Mumbai, HCL Technologies Ltd. Gurugram and HDFC Bank Powai, Mumbai are the top three exempt establishments in the private sector, both in terms of number of claims settled and amount disbursed, he said.
In the public sector, ONGC Dehradun, Neyveli Lignite Corporation Neyveli and BHEL Trichy are the top three exempt establishments that have settled the maximum number of COVID-19 claims in advance; while Neyveli Lignite Corporation Neyveli, ONGC Dehradun and Vishakhapatnam Steel Plant Vishakhapatnam are the top three establishments in terms of amount disbursed to EPF members, he said.
The provision for a special withdrawal from the EPF Scheme to combat the COVID-19 pandemic is part of the PMGKY scheme announced by the government and an urgent notification was made on the matter to introduce a paragraph 68 L (3) of the EPF Scheme on March 28 2020.
Under this provision, a non-refundable withdrawal is provided to the extent of basic wages and expense allowances for three months or up to 75 percent of the amount corresponding to the member's credit in the EPF account, whichever is less .
Despite the fact that only a third of staff are able to work due to the closure, EPFO is committed to serving its members during this difficult situation and EPFO offices are functional to assist them during these testing times, he said.
Earlier last month, on March 28, the Employee Provident Fund Organization (EPFO) had allowed formal sector workers under its umbrella to withdraw a non-refundable advance from their retirement savings to deal with difficulties due to to blocking.
"EPFO under the Union Ministry of Labor and Employment has resolved a total of 12.91 lakhs of claims, including 7.40 lakhs of COVID-19 claims under the Pradhan Mantri Garib Kalyan Yojana (PMGKY) package," said a statement from the ministry of job.
The settlement of claims involves the disbursement of the total amount of Rs 4,684.52 crore, which includes Rs 2,367.65 crore COVID under the PMGKY package.
Private exempt PF trusts have also increased amid the COVID-19 pandemic, the ministry said.
As of April 27, 2020, FP-exempt Trusts under this scheme have disbursed Rs 875.52 million to 79,743 FP members in advance for COVID-19, with 222 private-sector establishments disbursing Rs 338.23 million to 54,641 beneficiaries, disbursing 76 public sector establishments Rs 524.75 million to 24,178 beneficiaries and 23 cooperative sector establishments that disburse Rs 12.54 million to 924 claimants, he said.
Private PF trusts manage the PF money of their employees and account for themselves. They are exempt from filing a monthly FP statement and are therefore also called exempt establishments.
Tata Consultancy Services Mumbai, HCL Technologies Ltd. Gurugram and HDFC Bank Powai, Mumbai are the top three exempt establishments in the private sector, both in terms of number of claims settled and amount disbursed, he said.
In the public sector, ONGC Dehradun, Neyveli Lignite Corporation Neyveli and BHEL Trichy are the top three exempt establishments that have settled the maximum number of COVID-19 claims in advance; while Neyveli Lignite Corporation Neyveli, ONGC Dehradun and Vishakhapatnam Steel Plant Vishakhapatnam are the top three establishments in terms of amount disbursed to EPF members, he said.
The provision for a special withdrawal from the EPF Scheme to combat the COVID-19 pandemic is part of the PMGKY scheme announced by the government and an urgent notification was made on the matter to introduce a paragraph 68 L (3) of the EPF Scheme on March 28 2020.
Under this provision, a non-refundable withdrawal is provided to the extent of basic wages and expense allowances for three months or up to 75 percent of the amount corresponding to the member's credit in the EPF account, whichever is less .
Despite the fact that only a third of staff are able to work due to the closure, EPFO is committed to serving its members during this difficult situation and EPFO offices are functional to assist them during these testing times, he said.
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