EPFO Discontinues COVID-19 Advance Facility, Focuses on UAN-based Reforms
MAS Team | 21 June 2024
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The Employees' Provident Fund Organization (EPFO) has announced the discontinuation of its COVID-19 advance facility with immediate effect. This decision comes as the organization acknowledges that the COVID-19 situation is no longer classified as a pandemic. The COVID-19 advance scheme was introduced during the early stages of the pandemic, allowing eligible individuals to secure a non-refundable withdrawal from their Employees' Provident Fund (EPF) accounts.
 
The COVID-19 advance facility enabled EPF members to withdraw an amount equivalent to their basic wages and dearness allowances for three months or up to 75% of the amount standing to their credit in the EPF account, whichever was lower. This provision aimed to provide financial assistance to EPF subscribers during the challenging times of the pandemic.
 
While the COVID-19 advance facility has been discontinued, EPF subscribers can still seek advances under other conditions, provided that their Universal Account Number (UAN) is activated and the phone number linked to the UAN is functional.
 
Alongside the discontinuation of the COVID-19 advance facility, the EPFO is set to implement a series of reforms aimed at streamlining its operations and enhancing the experience for its members.
 
UAN-based Single Accounting System and Automated Claim Settlement
In a significant move, the EPFO is gearing up to introduce a UAN-based single accounting system for each member. This initiative will consolidate all member accounts into a single account, simplifying the management and tracking of EPF contributions and benefits.
 
Additionally, the EPFO is revamping its application to automate the process for faster settlement of claims. This automation is expected to expedite the claim settlement process, ensuring that EPF members receive their entitled benefits in a timely manner.
 
Auto Settlement of Advances Up to 1 Lakh
The EPFO has already implemented the auto settlement of advances up to 1 Lakh for illness, education, marriage, and housing purposes. According to the Ministry of Labour and Employment, approximately 25 Lakh advance claims have been settled through this automated mode, significantly increasing the speed of claim settlement.
 
The Ministry's statement highlights that a large number of these claims are now being settled within three days, a testament to the efficiency gained through automation and process optimization.
 
Ongoing Reforms for Enhanced Member Experience
The EPFO's decision to discontinue the COVID-19 advance facility and focus on UAN-based reforms is part of a broader effort to enhance the member experience and adapt to the evolving needs of its subscribers.
 
By implementing a single accounting system, automating claim settlements, and streamlining processes, the EPFO aims to provide a more efficient and transparent service to its members, ensuring timely access to their hard-earned funds and benefits.
 
As the COVID-19 situation continues to stabilize, the EPFO's shift in focus towards modernization and technological advancements demonstrates its commitment to staying relevant and responsive to the changing landscape of employee welfare and social security.
 
Dear Investor,
In case of any grievance / complaint :
  • Please contact Compliance Officer Shraddha Mhatre at [email protected] and Phone No. - 91-22-35131664.
  • You may also approach CEO Debashis Basu at email- id [email protected] and Phone No. - 91-22-35131664.