DIP IN EPF SAVINGS

WHY IN NEWS ?

• According to the Union Government, about 7.63 million salaried workers have used their retirement savings to deal with covid-19 crisis since 2020. Back then, the centre had allowed EPF subscribers to withdraw more money from their Employees’ Provident Fund corpus so that they can deal with hardships and income loss.

What does it reflect ?

• EPFO’s (Employees’ Provident Fund Organisation) efforts to offer non-refundable advances amid covid-19 helped millions. EPF subscribers had withdrawn almost ₹18,700 crore by May 31, 2021. Disbursements also reflect hardships that salaried class is facing amid pandemic.

Employees’ Provident Fund Organisation (EPFO)

• EPFO is a social security body responsible for running and supervising “state pension schemes” for people across India. It assists Central Board in administering compulsory contributory provident fund, pension and insurance scheme for workforce.
• It implements bilateral social security agreements among countries. Schemes cover both Indian workers and international workers in countries.
• Central Board of Trustees (CBT) is the apex decision making body of EPFO. CBT is a statutory body established by the Employees’ Provident Fund and Miscellaneous Provisions Act, 1952. It works under the Ministry of Labour and Employment.