Amendments to the Employees' Provident Fund Scheme for Medical Advances
On the heels of amending the Employees' Provident Fund (EPF) Scheme, 1952 to allow 90% withdrawal for housing purposes, the Labour Ministry has simplified the process for EPF account holders to make non-refundable advances from their accounts for medical reasons as well, according to a news report. The amendment in clauses 68-J and 68-N now allows over four crore EPF subscribers to access funds in their accounts without a doctor's certificate.
Details of the Amendment
The Labour Ministry has amended clauses 68-J and 68-N of the Employees' Provident Fund Scheme 1952 to enable members to take non-refundable advances from their accounts for the treatment of illness and to purchase equipment to minimize hardship due to handicap, as stated by a senior official. The notification for the amendment was issued on 25th April.
Previous Requirements for Medical Advances
Previously, EPFO subscribers could seek advances under Para 68-J for their own treatment or their dependents' treatment when hospitalization lasted for a month or more, involved important surgical operations, or in cases of TB, leprosy, paralysis, cancer, mental derangement, or heart ailments. This advance was approved only when the subscriber submitted a certificate from a doctor at the hospital, confirming that hospitalization for a month or more, or a major surgical operation was indispensable. Additionally, a certificate from the employer or employee was required to confirm that the subscriber or their dependent was not enrolled in the Employees' State Insurance Scheme facility and benefits.
Provisions for Physically Challenged Members
Under Para 68-N, physically challenged members could seek advances for purchasing equipment related to their handicap. Similar to the provisions of Para 68-J, withdrawals were allowed after medical certificates from a medical practitioner or an officer authorized by EPFO were submitted.
Changes with the Amendment
With the amendment, the requirements for submitting medical certificates and documents have been removed. Now, subscribers can seek funds for these reasons using a composite form and a self-declaration. However, the cap on the withdrawal remains, i.e., "the amount shall not exceed the member's basic wages and dearness allowance for six months or their own share of contribution with interest thereon or the cost of equipment, whichever is lower."
From India, Suri
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9On the heels of amending the Employees' Provident Fund (EPF) Scheme, 1952 to allow 90% withdrawal for housing purposes, the Labour Ministry has simplified the process for EPF account holders to make non-refundable advances from their accounts for medical reasons as well, according to a news report. The amendment in clauses 68-J and 68-N now allows over four crore EPF subscribers to access funds in their accounts without a doctor's certificate.
Details of the Amendment
The Labour Ministry has amended clauses 68-J and 68-N of the Employees' Provident Fund Scheme 1952 to enable members to take non-refundable advances from their accounts for the treatment of illness and to purchase equipment to minimize hardship due to handicap, as stated by a senior official. The notification for the amendment was issued on 25th April.
Previous Requirements for Medical Advances
Previously, EPFO subscribers could seek advances under Para 68-J for their own treatment or their dependents' treatment when hospitalization lasted for a month or more, involved important surgical operations, or in cases of TB, leprosy, paralysis, cancer, mental derangement, or heart ailments. This advance was approved only when the subscriber submitted a certificate from a doctor at the hospital, confirming that hospitalization for a month or more, or a major surgical operation was indispensable. Additionally, a certificate from the employer or employee was required to confirm that the subscriber or their dependent was not enrolled in the Employees' State Insurance Scheme facility and benefits.
Provisions for Physically Challenged Members
Under Para 68-N, physically challenged members could seek advances for purchasing equipment related to their handicap. Similar to the provisions of Para 68-J, withdrawals were allowed after medical certificates from a medical practitioner or an officer authorized by EPFO were submitted.
Changes with the Amendment
With the amendment, the requirements for submitting medical certificates and documents have been removed. Now, subscribers can seek funds for these reasons using a composite form and a self-declaration. However, the cap on the withdrawal remains, i.e., "the amount shall not exceed the member's basic wages and dearness allowance for six months or their own share of contribution with interest thereon or the cost of equipment, whichever is lower."
From India, Suri
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Amendments-in-P aragraph-72-6-o f-EPF-Scheme-19 52.pdf
EPF & Misc. Provision Act.1952 & the scheme.ppt