Private establishments such as Vizag Steel Plant, NLC, TCS, state-run power giant NTPC, HCL and Power Grid have disbursed Rs 481.63 crore to 40,826 employees as non-refundable advance to cope up with difficulties during the lockdown to contain COVID-19.
While the Coronavirus outbreak has made an immense dent on the financial and economic cycle of the country, this effort is somehow a great element of immediate relief for the employees.
Employees’ Provident Fund Organisation (EPFO) regulates these trusts as exempted establishments. These establishments have exemption from filing EPF returns with the EPFO and manage their employees EPF account as well as funds.
”As on the forenoon of 17.04.2020, Rs. 481.63 crores (Rs. 481,63,76,714) have been disbursed to 40,826 PF Members as advance under para 68-L for COVID-19 by the exempted PF Trusts,” Ministry of Labour has said in a statement.
Under the PMGKY scheme, employees were allowed non-refundable withdrawal of up to three months or 75 percent (whichever is lower) of basic wage and dearness allowance of their PF. This was notified in the employees’ provident fund (EPF) scheme on March 28 to help workers deal with cash crunch during the coronavirus pandemic.
However, on the contrary, there is strong unrest among entrepreneurs and business owners who are even struggling with cash flow crunch and economic instability due to COVID-19. These entrepreneurs urged the official authorities to take some action and bring financial relief to them.