Home » News » India » At Peak of Covid-19 Onslaught, 71 Lakh PF Accounts Closed in April-December 2020
1-MIN READ

At Peak of Covid-19 Onslaught, 71 Lakh PF Accounts Closed in April-December 2020

Shutterstock/Representative image

Shutterstock/Representative image

Total withdrawals from EPF account in April-December 2020 rose to Rs 73,498 crore from Rs 55,125 crore in the corresponding period year ago.

As many as 71.01 lakh employees’ provident fund (EPF) accounts were closed during April-December period in 2020 – when India was reeling under the onslaught of Covid-19 and massive job losses were reported.

On the other hand, withdrawals rose by over 33% to Rs 73,498 crore during the first nine months of 2020 compared with Rs 55,125 crore in the corresponding period of 2019, Labour and employment minister Santosh Gangwar told Lok Sabha on Monday.

“The number of Employees’ Provident Fund (EPF) accounts closed during the period from April to December 2020 is 71,01,929," Gangwar said in a written reply to the Lok Sabha.

According to the reply, the number of closure of EPF account in April-December 2019 was 66,66,563.

RELATED NEWS

The EPF account is closed for many reasons including superannuation, job loss or changing jobs. The minister also stated that the number of EPF accounts with partial withdrawal also rose to 1,27,72,120 in April-December 2020 from 54,42,884 in the same period in 2019.

Total withdrawals from EPF account in April-December 2020 rose to Rs 73,498 crore from Rs 55,125 crore in the corresponding period year ago. In a separate reply to the House, the minister said that under the Aatmanirbhar Bharat Rozgar Yojna (ABRY), 1.83 lakh establishment or firms have been registered covering 15.30 Lakh employees till February 28, 2021.

As much as Rs 186.34 crore has been released under the ABRY till February 28, 2021. The ABRY scheme has been launched to incentivize employers for creation of new employment along with social security benefits and restoration of loss of employment during the COVID-19 pandemic.

This scheme being implemented through the Employees’ Provident Fund Organisation (EPFO) reduces the financial burden of the employers of various sectors/ industries and encourages them to hire more workers.

Under ABRY, the Government of India is bearing for a period of two years, both the employees’ share (12% of wages) and employers’ share (12% of wages) of contribution payable. In another reply to the House, the minister said the EPFO has invested Rs 27,532.39 crore in exchange traded funds (ETF) till February 28, 2021.

The EPFO had invested Rs 32,377.26 crore in 2019-20 and Rs 27,743.19 crore in 2018-19 in the ETF. In a separate reply to the House, the minister stated, “The number of claims settled by Employees’ Provident Fund Organisation (EPFO) during the lockdown period (i.e March 25, 2020 to May 31, 2020) were 31,01,818."

Read all the Latest News, Breaking News and Coronavirus News here

first published:March 16, 2021, 12:11 IST