Over the last few days, around Rs.8000 crore was withdrawn by at least 2.3 million members of EPFO from their retirement savings. This is mostly to compensate for the loss of monthly income during the lockdown.
According to the statistics, the number of people who are withdrawing the money is 10 times higher, compared to the withdrawal happened during the pre COVID period.
The Central Provident Fund Commissioner, speaking at a webinar conducted by the industry body Ph.D. Chamber of Commerce and Industries said that there are constant efforts from the retirement fund body to provide necessary relief and liquidity to stakeholders.
He also said that they have created such a beautiful and robust system, through which so many people, around 2.3 lakh are able to withdraw a humongous amount of 8000 crores.
This withdrawal is aided by the new rule which was passed earlier in March, by the Union government which says that EPF subscribers can withdraw 75% of their savings or up to a maximum of 3 months base pay and dearness allowance from the PF account or whichever is lower.
A recent survey has shown that around 121 million people in the country have lost jobs in April and the unemployment rate is 23% in the country. This survey is conducted by the Center for Monitoring Indian Economy(CMIE).
The CPFC body has told that the EPFO approach will benefit both the employers and employees in order to provide liquidity. The subscribers should be able to claim the benefits whenever they want, he said.
Also, the EPFO announced that it will not penalize any employers that default during this lockdown period. Barthwal finally concluded by urging the employers to file the electronic challan cum receipt in-time about their payroll and can pay the EPF deposits late.