GAZETTE OF ADVANCE EPF
EPF Advance Gazette Notification 2020
EPF Advance Gazette refers to the Gazette notification through which the Employees’ Provident Funds (Amendment) Scheme, 2020 was introduced to provide a special non-refundable advance from the provident fund account during an epidemic or pandemic. The Ministry of Labour and Employment issued the notification as G.S.R. 225(E) dated 27 March 2020. The amendment was published in the Official Gazette on 28 March 2020 and came into force on the date of publication.
The EPF Advance Gazette amendment inserted a new sub-paragraph, Paragraph 68L(3), into the Employees’ Provident Funds Scheme, 1952. It allowed the Commissioner, or an authorised officer, to permit a non-refundable advance to an eligible EPF member employed in an establishment or factory located in an area declared by the appropriate Government as affected by an epidemic or pandemic.
The advance was subject to a maximum of the member’s basic wages and dearness allowance for three months or 75% of the amount standing to the member’s credit in the EPF fund, whichever was less. This special provision became one of the important EPF relief measures introduced during the COVID-19 pandemic.
What Is The EPF Advance Gazette?
The EPF Advance Gazette is the official notification that amended the Employees’ Provident Funds Scheme, 1952 in March 2020. The notification created a temporary statutory route for members to obtain a non-refundable advance from their EPF accounts when their area was declared affected by an epidemic or pandemic.
The measure was significant because ordinary EPF advance provisions were designed for specified purposes such as illness, marriage, education, housing and other permitted circumstances. The new Paragraph 68L(3) created a specific pandemic-related route.
The official notification did not describe this as a regular refundable loan. It expressly provided for a non-refundable advance. This distinction is important because a non-refundable advance reduces the member’s provident fund balance and does not operate like a conventional loan requiring repayment.
View the official Ministry of Labour Gazette notificationEPF Advance 75 Percent Rule
EPF Advance 75 Percent is one of the most important features of the 2020 amendment. The amount permitted from the EPF account could not exceed 75% of the amount standing to the member’s credit in the fund.
However, 75% was not an automatic payment amount. The notification included an alternative ceiling based on the member’s basic wages and dearness allowance for three months. The member could receive the lower of these two amounts.
For example, suppose the member’s eligible EPF balance was ₹2,00,000. Seventy-five percent of that balance would be ₹1,50,000. If three months of basic wages and dearness allowance amounted to ₹1,20,000, the maximum advance under the provision would be ₹1,20,000 because that amount is lower.
In another example, if 75% of the EPF balance was ₹1,50,000 but three months of basic wages and dearness allowance amounted to ₹1,80,000, the maximum under the formula would be ₹1,50,000.
These examples demonstrate why members should compare both limits rather than assuming that 75% of the EPF balance was always payable.
EPF COVID Advance 2020
EPF COVID Advance 2020 is the commonly used description for the special advance introduced through the March 2020 Gazette amendment. The COVID-19 pandemic created an exceptional financial situation for workers, and the Government amended the EPF Scheme to provide a specific non-refundable withdrawal route.
EPFO’s annual report records that a new sub-paragraph (3) was inserted in Paragraph 68L through G.S.R. 225(E), published in the Gazette of India on 28 March 2020. The report describes the provision as a non-refundable advance of basic wages and dearness allowance for three months or up to 75% of the amount standing to the member’s credit, whichever was less.
The same EPFO annual report states that the Unified Portal was modified to enable members to apply for the COVID-19 advance and that an auto-settlement facility helped process eligible claims more quickly.
Read the official EPFO Annual Report 2020-21EPF Advance Para 68L
EPF Advance Para 68L is the specific statutory provision inserted by the 2020 amendment. Paragraph 68L of the EPF Scheme deals with advances from the provident fund in specified situations.
The 2020 amendment inserted sub-paragraph (3) after the existing sub-paragraph (2). The new provision specifically addressed establishments or factories located in areas declared affected by an epidemic or pandemic by the appropriate Government.
The amendment gave authority to the Commissioner or an officer authorised by the Commissioner to permit the advance upon application by a member.
This is important because the Gazette did not create an unconditional right to withdraw any percentage of the EPF balance. The provision operated within the statutory authority and conditions specified in Paragraph 68L(3).
EPF Non Refundable Advance
EPF Non Refundable Advance means an advance that does not have to be returned to the EPF account after it is paid to the member. The amount therefore represents a withdrawal from the member’s provident fund savings rather than a repayable loan.
The pandemic provision was specifically described as a non-refundable advance. Once paid, the amount reduced the member’s EPF balance available for future purposes.
This distinction is important when explaining the COVID-era benefit to employees. A member should not treat the amount as borrowed money that can simply be deposited back through normal repayment instalments.
The financial effect is therefore different from a conventional loan. While the advance can provide immediate support, it can also reduce the member’s accumulated retirement savings.
Who Could Receive The Pandemic EPF Advance?
The EPF Advance Gazette provision applied to a member of the EPF Scheme who was employed in an establishment or factory located in an area declared as affected by an epidemic or pandemic by the appropriate Government.
The wording of the Gazette therefore focused on the member’s employment and the status of the geographical area.
During the COVID-19 pandemic, the Government and EPFO treated the pandemic advance as a relief mechanism for affected EPF members. EPFO’s annual report records the use of the provision for COVID-related assistance.
The provision should nevertheless be distinguished from other EPF advances. The conditions and maximum amount under Paragraph 68L(3) were specifically associated with the epidemic or pandemic situation.
Three Months Basic Wages And Dearness Allowance
One of the two limits under the EPF Advance 75 Percent formula was basic wages and dearness allowance for three months.
This means the member’s eligible basic wages and DA were multiplied against the three-month period to determine one side of the maximum-advance calculation.
The second side of the calculation was 75% of the member’s EPF balance. The lower amount became the statutory ceiling.
This structure provided a limit based on both salary and accumulated PF savings. It prevented the member from automatically withdrawing an amount greater than the lower statutory ceiling.
Members should therefore retain accurate wage and EPF balance information when examining a historical claim.
Whichever Is Less Rule
The phrase “whichever is less” is essential when understanding the EPF Advance Gazette notification.
The formula contains two separate maximum limits. One is three months of basic wages and dearness allowance. The other is 75% of the amount standing to the member’s credit in the fund.
The member cannot simply choose the larger figure. The lower of the two amounts determines the maximum advance under Paragraph 68L(3).
This rule is useful for payroll and compliance professionals because it provides a straightforward method for checking whether a historical advance request falls within the statutory limit.
Example Of EPF Advance Calculation
Consider a member with monthly basic wages plus dearness allowance of ₹30,000. Three months would amount to ₹90,000.
If the member’s eligible EPF balance were ₹1,00,000, 75% would equal ₹75,000. Because ₹75,000 is lower than ₹90,000, the maximum advance under the provision would be ₹75,000.
Now consider another member whose three-month basic wages and DA were ₹90,000 and whose EPF balance was ₹2,00,000. Seventy-five percent of ₹2,00,000 is ₹1,50,000. In that situation, ₹90,000 is the lower amount.
These are illustrative examples only. Actual historical calculations depend on the member’s eligible wage and EPF balance under the applicable rules and the records used by EPFO.
Effective Date Of The Gazette Notification
The EPF COVID Advance 2020 amendment was notified by the Ministry of Labour and Employment on 27 March 2020 and stated that it would come into force on the date of publication in the Official Gazette.
The notification was published on 28 March 2020. The EPFO annual report identifies the Gazette publication date as 28 March 2020.
This is important for historical research because the legal provision should not be described as an indefinite advance facility that existed before the amendment. It was a specific amendment introduced in response to the pandemic situation.
The effective-date distinction can also matter when reviewing older claims or determining which EPF advance provision applied at a particular point in time.
Why The Government Introduced The Provision
The pandemic created significant economic disruption for workers and families. The special EPF advance mechanism was introduced as part of the Government’s relief response.
EPFO’s annual report records the pandemic advance as a relief measure and states that members employed in establishments or factories located in areas affected by an epidemic or pandemic could receive the specified non-refundable advance.
The measure gave members access to part of their accumulated provident fund savings without requiring the amount to be repaid.
This provided an immediate source of financial support while also carrying the longer-term consequence of reducing retirement savings.
Auto Settlement Of COVID EPF Advance Claims
The EPF COVID Advance 2020 measure was accompanied by improvements to EPFO’s digital claim-processing system.
EPFO’s annual report states that the Unified Portal was modified in a short period to allow PF members to apply for the advance and that an auto-settlement facility supported quick settlement and disbursal.
The report also notes that EPFO expanded the auto-settlement process for advance claims for members whose UAN was seeded with complete KYC.
This digital approach was important during the pandemic because physical access to offices was constrained in many areas.
UAN And KYC For EPF Advance Claims
UAN and KYC information played an important role in EPFO’s digital claim environment during 2020.
EPFO’s annual report states that auto-settlement of advance claims was available for PF members having their UAN seeded with complete KYC.
Accurate member information could therefore make the online claim process smoother.
Incorrect KYC information, bank details or UAN-related information could instead create difficulties or require correction before a claim could be processed.
This demonstrates a broader EPFO principle: accurate member records are essential for efficient online services.
Bank Account And Claim Payment
EPF advances are paid through the EPFO claim-processing and banking system. Accurate bank information is therefore important when a member submits an advance claim.
Members should ensure that their bank account and KYC information are correctly linked and validated according to the EPFO process applicable to the claim.
A mismatch can lead to avoidable delays or the need for additional correction.
During the pandemic, digital processing was particularly valuable because it reduced dependence on physical paperwork and office visits.
Difference Between COVID Advance And Normal EPF Advance
The EPF Advance Para 68L COVID provision was different from ordinary EPF advances available for other specified purposes.
Normal EPF advances can be permitted for purposes such as illness, marriage, education, housing and other circumstances under separate paragraphs of the EPF Scheme.
The COVID-related provision was specifically inserted to address an epidemic or pandemic situation. Its maximum amount was also specifically defined as three months of basic wages and DA or 75% of the EPF balance, whichever was less.
Therefore, employees should not assume that the pandemic formula automatically applies to every EPF advance claim.
Non-Refundable Does Not Mean Unlimited
The term EPF Non Refundable Advance can sometimes create confusion. Non-refundable describes the repayment nature of the advance, not the absence of a statutory limit.
The 2020 Gazette imposed a clear maximum. The advance could not exceed the lower of the two prescribed amounts.
EPFO therefore had a statutory basis to limit the amount paid to the member.
This distinction is important because the word “advance” can otherwise be misunderstood as a freely selectable withdrawal from the member’s entire EPF balance.
Importance Of Historical EPF Records
The EPF Advance Gazette remains useful for historical payroll and compliance records because employers and employees may need to verify COVID-era claims years later.
Relevant records can include the member’s UAN, wage details, claim reference, EPF balance, bank information, claim settlement record and supporting EPFO communications.
Maintaining these records can help explain the amount received and the statutory basis for the payment.
For employers, it can also help when answering employee queries or reconciling historical payroll records.
Common Mistakes In Understanding The Gazette
One common mistake is saying that members could withdraw exactly 75% of their EPF balance. The Gazette clearly says the advance could not exceed 75% of the balance or three months of basic wages and DA, whichever was less.
Another mistake is describing the amount as refundable. The provision expressly calls it a non-refundable advance.
A third mistake is treating the March 2020 notification as a permanent change to all EPF advances. It was a specific provision for an epidemic or pandemic situation.
Another error is confusing the special COVID advance with PMGKY employer-contribution support. The two were separate COVID-era EPF measures with different purposes and eligibility conditions.
Difference Between EPF COVID Advance And PMGKY
The EPF COVID Advance 2020 allowed eligible EPF members to take a non-refundable advance from their own provident fund savings.
The PMGKY EPF benefit, by contrast, was a Government contribution measure in which the Government paid specified employee and employer EPF/EPS contribution amounts for eligible employees of qualifying establishments.
Therefore, an EPF member receiving a COVID advance and an employer receiving PMGKY contribution support were dealing with different schemes.
Keeping these two measures separate is essential when researching historical EPFO records.
Role Of EPFO During The Pandemic
EPFO used the special advance provision together with digital processing to provide financial access to members during the pandemic.
Its annual report records that the organisation implemented the necessary portal changes quickly and used auto-settlement to support faster benefit disbursal.
The report states that 47.65 lakh PF members availed the COVID advance, with ₹12,226.22 crore disbursed under the provision during the reporting period.
These figures illustrate the large-scale use of the special advance mechanism during the pandemic.
Current Historical Context
The EPF Advance Gazette document belongs to the EPF Scheme, 1952 framework and should be read as a historical pandemic-era amendment.
The Government subsequently introduced the broader Labour Code framework. The current EPFO legal framework has also evolved, and the Employees’ Provident Funds Scheme, 2026 was notified on 29 June 2026 under the Code on Social Security.
Therefore, a historical 2020 Gazette should not automatically be treated as the current rule for present-day EPF advance claims.
For a current claim, members should verify the latest EPFO scheme, rules, portal instructions and eligibility requirements.
Visit the official EPFO websiteOfficial Gazette Source
The Ministry of Labour and Employment has published the 2020 amendment notification. The notification identifies the Employees’ Provident Funds (Amendment) Scheme, 2020 and the insertion of Paragraph 68L(3).
Official EPF Amendment Scheme 2020 Gazette notificationThe official EPFO annual report provides historical information about implementation and the number of members who used the pandemic advance facility.
Official EPFO Annual Report 2020-21EPFO also issued operational communications for processing COVID-related advance claims through its digital platform.
View EPFO COVID advance processing instructionsRaj Consultancy Labour Law Support
Businesses requiring support with EPF compliance, payroll records, statutory documentation and labour-law requirements can review Raj Consultancy’s service resources.
Raj Consultancy Services Raj Consultancy Labour Law Compliance ServicesProfessional assistance can be useful when historical EPF records involve multiple claims, employee records, UAN information or reconciliation of old statutory transactions.
Seven Essential Checks For The EPF Advance Gazette
The EPF Advance Gazette can be understood through seven essential checks.
1. Check the notification: Confirm that the document relates to G.S.R. 225(E), the Employees’ Provident Funds (Amendment) Scheme, 2020.
2. Check the effective date: The amendment came into force on publication in the Official Gazette, with publication on 28 March 2020.
3. Check Paragraph 68L(3): This is the provision inserted for the pandemic-related advance.
4. Check the employment condition: The member had to be employed in an establishment or factory located in an area declared affected by an epidemic or pandemic by the appropriate Government.
5. Check the two limits: Compare three months of basic wages and DA with 75% of the EPF balance.
6. Apply the lower amount: The maximum advance was whichever amount was less.
7. Preserve historical records: Keep claim, wage, UAN, bank and EPF balance records for future verification.
This method provides a simple and reliable way to understand the historical notification and avoid common calculation mistakes.
Frequently Asked Questions
What is the EPF Advance Gazette?
EPF Advance Gazette refers to the March 2020 Gazette notification that inserted Paragraph 68L(3) into the EPF Scheme, 1952 to permit a special non-refundable advance during an epidemic or pandemic.
What was the maximum EPF COVID advance?
The advance could not exceed the basic wages and dearness allowance for three months or 75% of the member’s EPF balance, whichever was less.
Was the 75% amount automatic?
No. The 75% amount was one of two statutory limits. The lower of 75% of the EPF balance and three months of basic wages and DA determined the maximum.
Was the advance refundable?
No. The provision specifically described the amount as a non-refundable advance.
Which paragraph was inserted?
Sub-paragraph (3) was inserted after sub-paragraph (2) of Paragraph 68L of the Employees’ Provident Funds Scheme, 1952.
When was the Gazette notification issued?
The Ministry notification is dated 27 March 2020 and states that the amendment would come into force on publication in the Official Gazette. The Gazette publication date was 28 March 2020.
Who could obtain the advance under the notification?
The provision applied to a member employed in an establishment or factory located in an area declared affected by an epidemic or pandemic by the appropriate Government, subject to the scheme conditions.
How was the advance calculated?
The two ceilings were three months of basic wages and dearness allowance and 75% of the amount standing to the member’s credit in the EPF fund. The lower amount applied.
Was the COVID advance the same as PMGKY?
No. The COVID advance was a member withdrawal from the EPF account, while PMGKY provided Government-funded EPF/EPS contribution support for eligible employees and qualifying establishments.
Did the COVID advance reduce the PF balance?
Yes. Because it was a non-refundable advance from the member’s provident fund account, the amount paid reduced the accumulated PF balance.
Was auto-settlement available?
EPFO’s 2020-21 annual report states that auto-settlement was used to support quick settlement of eligible COVID-related advance claims.
Why were UAN and KYC important?
EPFO’s digital advance-processing system used member information and complete KYC for auto-settlement and online claim processing, making accurate records important.
Conclusion
EPF Advance Gazette is an important historical EPFO notification from the COVID-19 period. The Ministry of Labour and Employment issued G.S.R. 225(E) dated 27 March 2020 to amend the Employees’ Provident Funds Scheme, 1952.
The amendment inserted EPF Advance Para 68L, specifically Paragraph 68L(3), allowing an authorised EPFO officer to permit a non-refundable advance to an eligible member employed in an establishment or factory located in an area declared affected by an epidemic or pandemic.
The EPF Advance 75 Percent rule was one of the most important parts of the amendment. The member could receive an amount up to three months of basic wages and dearness allowance or 75% of the amount standing to the member’s credit in the EPF fund, whichever was less.
The EPF Non Refundable Advance was different from a conventional loan because the member was not required to repay the amount to the provident fund account through normal instalments. The withdrawal therefore provided immediate financial support but also reduced the member’s accumulated retirement savings.
The measure became part of the Government’s COVID-19 response. EPFO’s Annual Report 2020-21 records that the organisation modified its Unified Portal to enable members to apply for the advance and introduced auto-settlement mechanisms to support faster claim processing.
The historical notification should not be confused with the PMGKY scheme. The pandemic advance allowed eligible members to withdraw from their own EPF savings, whereas PMGKY involved Government-funded employee and employer contribution support for eligible employees of qualifying establishments.
For historical compliance, the notification date, Gazette publication date, Paragraph 68L(3), member eligibility, three-month wage limit, 75% EPF balance limit and “whichever is less” condition are the most important points to preserve.
Members and employers should also retain relevant UAN, KYC, wage, claim and settlement records when maintaining historical EPF documentation.
This notification is a historical COVID-era provision. Present-day EPF advance rules should be checked against the latest EPFO scheme, applicable rules and official instructions before a current claim is submitted.
