As the second wave of COVID-19 hit India, people are not only fighting the virus but also worrying about the expenditure. In such a scenario, the Employee Provident fund can be utilised.
As per the Employee Provident Fund Organisation (EPFO) it is mandatory for the EPFO subscriber and its recruiter to contribute 12% of the basic salary of the employee. However as per their norms employee can withdraw money for a medical emergency, construction, marriage purposes or purchase of a new house, renovation and repayment of loans.
An EPF account holder can withdraw up to 90 % of the EPF balance for buying or renovating a home.
People who want to withdraw money for COVID-19 treatment can withdraw money in the event of a medical emergency for family members or spouse, that is if an employee’s parent, spouse or children fell ill due to COVID-19 the member can withdraw the amount, no lock-in period or minimum services period is applicable to this type of EPF withdrawal.
Below is the list of documents required for the withdrawal:
An employee should have Universal Account Number (UAN)
The details of the employee’s bank account must match his EPF account.
Keep in mind that the EPF withdrawal fund will not be transferred to a third party bank account.
Please ensure that the father’s name and the date of birth of the employee must match with the proof that the borrower decides to submit.