The Employees’ Provident Funds (Amendment) Scheme, 2018

In a circular issued today, Dec. 19th, the EPFO allowed members who have not been employed for at least one month to withdraw up to 75% of their provident corpus. The EPFO circular clearly states that after two months of continuous unemployment 100% of the corpus can be withdrawn. There has been some confusion in this regard and this post is to clarify the same. A new clause, 68HH has been inserted after para 68H in the said Act.

MINISTRY OF LABOUR AND EMPLOYMENT
NOTIFICATION
New Delhi, the 6th December, 2018 

G.S.R. 1182(E).—In exercise of the powers conferred by section 5 read with sub-section (1) of section 7 of the Employees’ Provident Funds and Miscellaneous Provisions Act, 1952 (19 of 1952), the Central Government hereby makes the following Scheme, further to amend the Employees’ Provident Funds Scheme, 1952, namely:-  

1. (1) This Scheme may be called the Employees’ Provident Funds (Amendment) Scheme, 2018.
(2) It shall come into force from the date of its publication in the Official Gazette. 

2. In the Employees’ Provident Funds Scheme, 1952, after paragraph 68H, the following shall be inserted, namely:-

“68HH. Non-refundable advance to a member in case of continuous un-employment for a period of not less than one month.- The Commissioner or, where so authorised by the Commissioner, any other officer subordinate to him, may permit a member, on ceasing to be an employee in any factory or establishment to which the Act applies, a non-refundable advance upto seventy-five percent of the amount standing to his credit in the Fund, if he has not been employed in any factory or other establishment for a continuous period of not less than one month immediately preceding the date on which he makes an application for such non-refundable advance.”. 

[F. No. S-35012/8/2018-SS-II]
R. K. GUPTA, Jt. Secy. 

Note: The principal Scheme was published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide number S.R.O. 1509, dated the 2nd September, 1952 and was last amended vide number G.S.R. 436(E) dated the  4th May, 2017. 

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Even after such withdrawal is made, the person shall remain part of the EPF and eligible for pension benefits. However, the advance cannot be remitted back into the EPF.

The circular clearly states that para 69(2) that allows 100% withdrawal after two months of continuous unemployment is still in effect. Women resigning to get married can withdraw 100% without waiting for two months. This is a snapshot of the circular.