Important updates for Employees provident fund subscribers again, relating to reliefs amid pandemic. Taxpayers and people having EPF Registration must note these new updates. These latest EPFO updates include a second Covid-19 advance to non-refundable advance from the EPF account. These updates are very crucial for anyone as these can help people fight covid-19 and other financial crises.
In this article, we will read about 5 Important updates for employees provident fund subscribers.
5 Important updates for employees provident fund subscribers
The government has been announcing several updates to help citizens in India amid the covid-19 crisis. For instance, several tax reliefs and GST relaxation on COVID-19 supplies.
Similarly, the Employees Provident Fund Organization (EPFO) has made new announcements. These announcements are encouraging and a massive relief for employees having EPF Registration.
Non-refundable advance – Important updates for employees provident fund subscribers
As per the new update, EPFO members who have been out of work for one month or longer may withdraw up to 75% of their PF balance. EPFO provides this service to EPF account holders without terminating their PF accounts, allowing EPFO members to continue receiving pension benefits under EPF pension regulations.
EPFO to allow second Covid 19 Advance Withdrawal
Secondly, we have a major update regarding EPFO withdrawal. The EPFO states that an EPF account holder who made a withdrawal of a Covid advance during the first wave is now qualifying for a second Covid advance from his or her PF account.
However, it is important to note that, Under this EPFO relief, an EPF account holder will be able to withdraw up to only 75% of his or her EPF balance, or three months’ basic salary + Dearness Allowance (DA).
COVID Advance after leaving the job
On the third number of Important updates for employees provident fund subscribers, we have COVID Advance after leaving the job. An EPFO member is now eligible for a Covid advance from his or her EPF account even if he or she has left his or her employment. However, the eligibility criteria are that they have not claimed full and final PF Withdrawal.
Mandatory EPF Aadhaar seeding with EPF Account
From now on, it is mandatory to link the EPF account with Aadhar Card. The extension of the deadline for aadhar seeding with EPF or PF account is till 1st September 2021. Lastly, failing to link aadhaar with EPF can cause serious problems. For instance, Employers would be unable to contribute to such EPF accounts, and EPFO will not enable employers to file ECR (Electronic Challan-cum Return) for such EPF accounts.
Increase in EDLI insurance benefit
The EPFO has increased the maximum insurance benefit under the EDLI programme from 6 lakh to 7 lakh. If an EPF account holder dies while serving, his or her nominee or legal successor (whoever is eligible) will be eligible for an insurance benefit of up to Rs. 7 lakh. The minimal barrier, however, is a constant at 2.5 lakh.
Download E-Startup Mobile App and never miss the newest updates associating with your business.