The amount of disbursements for COVID-19 claims to subscribers represents a significant amount of more than one-fifth of the total disbursement during the period by EPFO.
The EPFO pension fund organization settled 56.79 lakh COVID-19 non-refundable advance requests and disbursed 14,310 crore until December 31, 2020, reflecting the negative impact of the pandemic on the workforce. work in the formal sector.
When the coronavirus-induced lockdown was imposed in March, the central government allowed more than 6 crore underwriters from the Employees ‘Provident Fund Organization (EPFO) to withdraw an amount not exceeding their three months’ salary from base and cost allowance from their EPF account, to support them during the national foreclosure.
“EPFO has settled 56.79 lakh of COVID-19 withdrawal claims and has disbursed ₹ 14,310 crore to subscribers during the pandemic through December 31, 2020,” a source said.
According to the source, EPFO has settled 197.91 lakh claims related to final settlement, death, insurance, early claims and has disbursed ₹ 73,288 crore until December 31, 2020.
The amount of disbursements for COVID-19 claims to subscribers represents a significant amount of over one-fifth of the total disbursement during the period by EPFO.
According to the source, the amount of the disbursement amount for COVID-19 claims reflects stress among formal sector workers due to the negative impact of the pandemic, which has resulted in job losses, wage cuts and forced migration, etc.
The Center presented the Pradhan Mantri Garib Kalyan Yojana (PMGKY) on March 26 to provide assistance to the economically weakest sections in the face of the pandemic.
The government has announced a provision for withdrawal from the EPF scheme, providing for a non-refundable withdrawal up to base salary and DA for three months or up to 75% of the amount credited to the member in the EPF account, depending on the amount the lowest.
In addition, EPF’s private trusts also settled 4.19 lakh COVID-19 claims and disbursed ₹ 3,983 crore to members to provide liquidity to meet demands due to the pandemic, the source said.
The private EPF trusts manage the fund themselves as well as the EPF accounts of their members. These companies are exempt from filing EPF declarations with EPFO. These are regulated by EPFO.
During the pandemic, EPFO proposed innovative measures such as automatic settlement mode and multi-site claims settlement to ensure COVID-19 claims settlement within three days despite restrictions on full deployment of staff.