5 Employee Provident Fund (EPF) updates You Should Know in 2021
The Employee Provident Fund (EPF) is a government-backed scheme. The employer's contribution is 12% and an equal contribution is also paid by the employee. From the employer’s share of contribution, 8.33% is contributed towards the Employees’ Pension Scheme and the remaining 3.67% is contributed to the EPF Scheme. Recently, EPFO made few changes and updates like allowing the subscribers to withdraw money from their Provident Fund (PF) accounts as non-refundable advance and extension of the deadline to link Aadhar EPF link. Non refundable advance Unemployed Members (for a month or more) can avail a non-refundable advance of up to 75% of amount available in their PF account. The tweet from their account read “Members who are no longer employed for one month or more can avail a non-refundable advance of up to 75 per cent of the amount available in their PF account.” This can be done without closing the PF account. Second COVID-19 Advance EPF account holder can obtain a Second COVID-19 advance from EPF balance up to 3 months of basic salary plus DA or 75% of the balance standing in the account, whichever is less. The same can be proceeded further by making an online application by using the applicant's EPFO credentials. Covid advance after leaving job An EPF account holder who has availed Covid advance in first wave is now eligible for second Covid advance from one's PF account. An EPFO member is eligible for Covid advance from one's EPF account even after leaving his/her job provided full and final PF withdrawal hasn't been claimed. EPF EDLI Scheme If an EPF account holder dies during the services then his/her family will get a maximum amount of Rs 7 lakh as part of the Employee’s Deposit Linked Insurance (EDLI) Scheme. The reason for the untimely death can be any including death related to Coronavirus. The maximum threshold was earlier fixed at Rs 6 lakh. Now, it has been increased to Rs 7 lakh. The minimum amount threshold has been kept at Rs 2.5 lakh. Aadhaar seeding The EPFO has made it mandatory for the EPF account holders to link their respective EPF account with Aadhaar card. Earlier the deadline for Aadhaar EPF link was 31st May 2021, which has been now extended Deadline for the same is 1st September 2021.