Hit by Covid-19 lockdowns, 1.04 Cr Salaried Workers Withdraw INR 39,402 Crore from PF Since March Data shows that INR 39,402 is slightly less than one-third of the Employee Provident Fund Organisation's (EPFO) yearly collections

By Shipra Singh

You're reading Entrepreneur India, an international franchise of Entrepreneur Media.


As Covid-19 wreaked havoc on livelihoods of millions of workers, salaried individuals withdrew a whopping INR 39,402 crore from the Employee's Provident Fund (EPF) since the first nationwide lockdown was imposed on March 25 till end of August. This data was released by the union labour ministry in the Lok Sabha this week.

The ministry further added that about 104 crore salaried workers dipped into their retirement savings during the same time period.

Data shows that INR 39,402 is slightly less than one-third of the Employee Provident Fund Organisation's (EPFO) yearly collections.

The government shared information with regard to withdrawals from the EPF in response to a question asked by MPs Sudheer Gupta, Benny Behanan, Srirang Appa Barne, Bidyut Baran Mahato and Sanjay Shivrao Mandlik.

Of the 24 states and union territories (UTs) whose data has been shared, Maharashtra recorded highest withdrawal of INR 7,837 crore, followed by Karnataka and Tamil Nadu (including Puducherry) at INR 5,743 crore and 4,984 crore, respectively.

These three states made up 47 per cent of the total withdrawal amount.

Jammu & Kashmir and Ladakh recorded lowest withdrawal of INR 44 lakh, followed by Goa at INR 184 crore. National capital Delhi witnessed withdrawal of INR 2,940 crore.

Earlier this month, EPFO announced that for the financial year 2019-20 it will pay out the 8.5 per cent interest in two installments due to the impact of Covid-19 on the retirement fund's earnings.

Also Read: Hit by Covid-19, EPFO to Credit Interest in Two Tranches

"There is no going back on 8.5 per cent rate for FY20, but the current situation has pushed us to go for two instalments. Some of the investments could not be encashed due to bad market situation, hence this new formula," said Virjesh Upadhyay, member of CBT," said Virjesh Upadhyay, member of Central Board of Trustees (CBT), apex decision-making body of EPFO.

Shipra Singh

Entrepreneur Staff

Freelance Journalist

Now a freelance journalist, ealier steered the Wealth section on the Entrepreneur website, covering everything finance. Previously a personal finance reporter at The Economic Times and Outlook Money.

Related Topics

Business News

Here's the Secret to Growing Your Small Business, According to Execs at UPS, Airbnb, Mastercard, and Other Big Brands

These 10 executives work at big companies, overseeing programs that help small business. Here's the advice they wish all small business owners were getting.

Business News

'Bar Tab Was Almost 80%': Restaurant Slams Well-Known Columnist After He Goes Viral For Claiming His Meal Cost $78

A photo of a burger and fries from 1911 Smokehouse BBQ at Newark Airport went viral for its alleged price, but the restaurant says the man didn't factor in his many alcoholic drinks.

Business News

Is Your Relationship With Your Work at a Breaking Point? You're Not Alone, Survey Finds

In a new survey by HP, 83% of unhappy workers said they are willing to earn less to be happier at their job.

Growing a Business

This is the Number One Mistake to Avoid After Hiring Your First Employee. Are You Guilty of It?

Hiring the "best candidate for the job" won't necessarily cut it anymore.

Growing a Business

A 5-Time Founder Shares His Best Success Tips

Godard Abel's sold businesses to Oracle and Salesforce, and these are the three biggest secrets to his success.

Business News

Opening a New McDonald's Franchise Will Be More Expensive in 2024

Starting January 1, franchise royalty fees will rise from 4% to 5% for new locations in the U.S. and Canada.