The Ministry of Labour and Employment on Sunday introduced additional benefits for staff by way of social securities schemes run by the EPFO and the ESIC amid the COVID-19 pandemic.
These benefits embrace pension for dependents of insured individuals with Employees’ State Insurance Corporation (ESIC) who died on account of COVID-19 and hike in most sum assured under the group insurance coverage scheme Employees’ Deposit Linked Insurance Scheme (EDLI), run by Employees’ Provident Fund Organisation (EPFO), to Rs 7 lakh from Rs 6 lakh.
“The Ministry of Labour and Employment has announced additional benefits for workers through ESIC and EPFO schemes to address the fear and anxiety of workers about the well-being of their family members due to the increase in incidences of death due to COVID-19 pandemic,” a ministry assertion mentioned.
Enhanced social safety is sought to be offered to the employees with none additional price to the employer, it added.
Currently, for the insured individuals (IPs) under the ESIC, after dying or disablement of the IP on account of employment damage, a pension equal to 90 per cent of common each day wage drawn by the employee is on the market to the partner and widowed mom for all times lengthy and for youngsters until they attain the age of 25 years.
For the feminine little one, the profit is on the market until her marriage.
To help the households of IPs under the ESIC scheme, it has been determined that, all dependent relations of IPs who’ve been registered within the on-line portal of the ESIC previous to their analysis of COVID illness and subsequent dying as a result of illness, will likely be entitled to obtain the identical benefits and in the identical scale as acquired by the dependents of insured individuals who die on account of employment damage, topic to 2 situations, it defined.
First situation is that the IP will need to have been registered on the ESIC on-line portal at the least three months previous to the analysis of COVID illness leading to dying.
Secondly, the IP will need to have been employed for wages and contributions for at the least 78 days ought to have been paid or payable in respect of deceased IP throughout a interval of 1 12 months instantly previous the analysis of COVID illness leading to dying.
The IPs, who fulfil the eligibility situations, and have died on account of COVID illness, their dependents will likely be entitled to obtain month-to-month fee on the fee of 90 % of common each day wages of the insured individual throughout their life.
The scheme will likely be efficient for a interval of two years from March 24, 2020.
Under the EPFO’s Employees’ Deposit Linked Insurance (EDLI) scheme, all surviving dependent relations of the members of this scheme are eligible to avail benefits of EDLI in case of dying in harness of the member.
At current under this scheme, the benefits prolonged in case of dying of a employee are not any requirement of minimal service for fee of Gratuity, household pension is paid as per provisions under EPF & MP Act, illness good thing about 70 % of wages for 91 days in a 12 months is paid within the occasion of employee falling sick and never attending workplace.
A notification issued by the ministry has made sure amendments within the scheme.
Firstly, quantity of most profit has been elevated from 6 lakh to 7 lakh to the relations of deceased worker.
Secondly, the minimal assurance good thing about Rs 2.5 lakh to eligible relations of deceased workers who was a member for a steady interval of 12 months in a number of institutions previous his dying rather than current provision of steady employment in the identical institution for 12 months.
It will profit contractual/informal labourers who had been dropping out on benefits as a result of situation of steady one 12 months in a single institution, the ministry defined.
The ministry has additionally restored provision of minimal 2.5 lakh compensation retrospectively, i.E., from fifteenth February 2020.
In the approaching three years, the actuary has estimated that eligible relations will get an additional good thing about Rs 2,185 crore from EDLI fund within the years 2021-22 to 2023-24.
The variety of claims on account of dying under the scheme has been estimated to be about 50,000 households per 12 months together with a rise in claims considering estimated dying of about 10,000 staff, which can happen on account of Covid, it mentioned.
These welfare measures will present the a lot wanted help to the households of staff who’ve died as a result of COVID-19 illness and can defend them from monetary hardships in these difficult instances of pandemic, it mentioned.Â
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