The COVID-19 pandemic brought about unprecedented financial challenges for millions across the world. In India, one significant relief measure offered to salaried employees was the ability to withdraw from their Provident Fund (PF) accounts to meet urgent financial needs. Understanding how many times we can withdraw PF advance for COVID-19 is crucial for those who still seek financial clarity and help. In this article, we will explore this topic in depth, covering the rules, eligibility, procedures, and important points employees must keep in mind.
What is PF Advance?
The Employees’ Provident Fund (EPF) is a savings scheme managed by the Employees’ Provident Fund Organisation (EPFO) under the Ministry of Labour and Employment, Government of India. It aims to provide financial security to employees after retirement.
However, under specific circumstances — such as medical emergencies, home construction, marriage, education, or in this case, a global pandemic — the EPFO permits PF advances. A PF advance is essentially a non-refundable withdrawal allowed before retirement without closing the PF account.
COVID-19 PF Advance Withdrawal
To combat the economic distress caused by COVID-19, the Indian government allowed EPF subscribers to withdraw a non-refundable advance from their PF accounts. This was notified under the Pradhan Mantri Garib Kalyan Yojana (PMGKY) in March 2020, invoking Section 68L of the EPF Scheme, 1952.
The key point here is that this withdrawal is termed as an “advance” and not a “final settlement”, meaning you could still continue with your PF account contributions after the withdrawal.
How Many Times We Can Withdraw PF Advance for COVID-19?
Initially, when the government allowed this facility in 2020, the rule permitted one-time withdrawal for COVID-19-related financial needs. However, recognizing the prolonged and continuing impact of the pandemic, the EPFO later amended the rule.
As per the latest updates (valid until further notifications):
- PF subscribers are allowed to withdraw COVID-19 advance more than once if required.
- This means multiple withdrawals can be made under the COVID-19 reason, subject to certain conditions.
In short, there is no strict limit on the number of times, but the cumulative withdrawal should respect certain financial constraints, such as the available balance and the permissible withdrawal amount.
How Much Can Be Withdrawn Each Time?
The amount you can withdraw under the COVID-19 advance is capped as follows:
- Up to 75% of the PF balance or
- Three months’ basic wages plus Dearness Allowance (DA),
whichever is lower.
This amount can be withdrawn each time you apply for the COVID-19 advance, provided you have sufficient balance in your account.
If an individual already withdrew once, they could still apply for another COVID-19 advance if the need arises and if their PF account has sufficient balance to accommodate the fresh advance.
Eligibility for PF Advance for COVID-19
To be eligible for COVID-19 PF advance:
- The individual must be an EPF member with an active UAN (Universal Account Number).
- The UAN should be KYC-compliant (linked with Aadhaar, PAN, and bank details).
- The individual must be employed (since unemployed members typically proceed for final settlement rather than advance).
There is no requirement for a minimum period of membership to apply for the COVID-19 advance.
Procedure to Withdraw PF Advance for COVID-19
Here is the step-by-step process for withdrawing a COVID-19 PF advance:
- Log in to the EPFO Member Portal:
Visit https://unifiedportal-mem.epfindia.gov.in/memberinterface/ - Enter UAN and Password to log in.
- Go to ‘Online Services’ and click on ‘Claim (Form-31, 19, 10C & 10D)’.
- Verify your KYC details.
- Choose ‘Proceed for Online Claim’.
- Select ‘PF Advance (Form 31)’.
- Choose the reason for advance as “Outbreak of pandemic (COVID-19)”.
- Enter the required amount and upload necessary documents (if asked).
- Submit the claim.
Upon submission, if all details are correct, the claim is processed quickly — usually within 3 to 7 working days — and the amount is credited directly to the member’s bank account.
Documents Required for PF Advance
The online process is designed to be paperless and quick. However, you must ensure:
- Aadhaar is linked and verified with UAN.
- Bank account details are correct and verified.
- PAN details are updated if the claim exceeds ₹50,000 (for tax purposes).
In most cases, no additional documents need to be uploaded for COVID-19 PF advance.
Key Points to Remember
- No tax is deducted for PF advance under COVID-19. It is treated as a non-taxable benefit.
- There is no requirement to refund the amount withdrawn as an advance.
- The advance does not affect ongoing employment — you can continue contributing to PF normally after withdrawal.
- Multiple withdrawals are allowed if your financial situation demands and if sufficient balance exists.
- Interest continues to accrue on the remaining balance in your PF account.
Important Notifications by EPFO
The EPFO issued multiple circulars updating the withdrawal facility:
- In March 2020, the facility was introduced for the first time.
- In May 2021, considering the second wave of COVID-19, EPFO allowed second-time withdrawal.
- Later clarifications indicated that more than two withdrawals could be permitted depending on the member’s situation and needs.
Thus, EPFO has kept the scheme flexible and dynamic, based on evolving pandemic conditions.
Advantages of COVID-19 PF Advance Withdrawal
- Immediate Liquidity: Helps meet urgent financial needs like medical bills, hospitalization, loss of income, etc.
- Simple Process: Online application with minimal paperwork.
- No Burden of Repayment: It’s a withdrawal, not a loan.
- Continued PF Membership: Withdrawal doesn’t terminate your PF account.
Disadvantages to Consider
- Reduction in Retirement Corpus: Withdrawal reduces the amount that would be available after retirement.
- Loss of Compounding Benefits: Over the years, PF amounts earn attractive interest. Early withdrawals reduce the total benefit.
- Emergency Use Only: Ideally, PF should be touched only in real emergencies like severe financial hardship.
Therefore, while multiple COVID-19 advances are allowed, it is advisable to use them only when absolutely necessary.
FAQs on How Many Times We Can Withdraw PF Advance for COVID-19
Q1. Can I apply for PF advance more than twice for COVID-19?
Ans: Yes, you can apply multiple times depending on your PF balance and requirement.
Q2. Is there any time gap required between two COVID-19 advances?
Ans: No specific mandatory gap is mentioned between two COVID-19 advances. You can apply as per your financial needs.
Q3. Will multiple withdrawals be taxed?
Ans: No, the COVID-19 PF advance is non-taxable.
Q4. Can a person who left the job take COVID-19 PF advance?
Ans: No. They must proceed for full PF withdrawal. COVID-19 advance is available for currently employed members only.
Q5. Will future contributions be affected after withdrawal?
Ans: No. Contributions will continue unaffected unless you opt for final settlement or unemployment withdrawal later.
Conclusion
Understanding how many times we can withdraw PF advance for COVID-19 is crucial for managing personal finances wisely during a crisis. The Indian government and EPFO displayed commendable responsiveness by allowing multiple COVID-19-related withdrawals without unnecessary restrictions.
- You can withdraw multiple times under the COVID-19 provision, subject to balance availability.
- The withdrawal is simple, tax-free, and helps alleviate financial burdens.
- However, each withdrawal reduces your retirement savings, so caution is advised.
If you are still facing financial hardship due to the lingering effects of the pandemic, and you have sufficient PF balance, you can utilize this facility judiciously. Always consider long-term financial planning even while addressing short-term emergencies.
