The Employees’ Provident Fund Organisation (“EPFO”) has issued a Circular dated 12 June 2024 stating that the Covid-19 non-refundable advances that were being provided to members under Para 68L sub-para (3) of the Employees’ Provident Fund Scheme, 1952 during the first and second wave of Covid-19 will no longer be provided. The circular states that “As Covid-19 is no longer a pandemic, the competent authority has decided to discontinue the said advance with immediate effect.”

The provision for giving Covid-19 advances was introduced via a circular dated 27 March 2020 under Pradhan Mantri Garib Kalyan Yojana (PMGKY) recognizing the need to support EPF members facing unprecedented economic uncertainties in the backdrop of the Covid-19 pandemic.

The present Circular applies to all EPF members, including those covered under Provident Fund Exempted Trusts. Therefore, in light of the present circular, the establishments running in-house private Provident Fund Trusts should:

1. Carefully evaluate and consider the Circular before settling any claims in the future related to Covid-19 advances requested by their employees.

2. Ensure claim settlement processes are aligned with this change. This will prevent confusion and delays when processing claims from employees who may be unaware of the discontinuance of the said provision.

3. Inform their employees about the discontinued provision to avoid any claim submissions on account of COVID-19 advance.