The
Ministry of Labour and Employment has announced additional benefits for workers
through ESIC and EPFO schemes.
These
benefits include a hike in maximum sum assured under the Employees Deposit
Linked Insurance Scheme (EDLI) under 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
wellbeing of their family members due to increase in incidences of death due to
COVID-19 pandemic," the ministry said in a statement on Sunday.
Enhanced
social security is sought to be provided to the workers without any additional
cost to the employer, it added.
Currently
for the Insured Persons (IPs) under ESIC, after death or disablement of the IP
due to employment injury a pension equivalent to 90 per cent of average daily
wage drawn by the worker is available to the spouse and widowed mother for life
long and for children till they attain the age of 25 years. For the female child,
the benefit is available till her marriage.
To
support the families of Insured Persons (IP) under the ESIC scheme, it has been
decided that, all dependent family members of IPs who have been registered in
the online portal of the ESIC prior to their diagnosis of COVID disease and
subsequent death due to the disease, will be entitled to receive the same
benefits and in the same scale as received by the dependents of insured persons
who die as a result of employment injury, subject to the following eligibility
conditions:
The
first condition is that the IP must have been registered on the ESIC online
portal at least three months prior to the diagnosis of COVID disease resulting
in death.
Secondly,
the IP must have been employed for wages and contributions for at least 78 days
should have been paid or payable in respect of deceased IP during a period of
one year immediately preceding the diagnosis of COVID disease resulting in
death.
The
IPs, who fulfill the eligibility conditions, and have died due to COVID disease,
their dependents will be entitled to receive monthly payment at 90 per cent of
average daily wages of the insured person during their life. The scheme will be
effective for a period of two years from March 24, 2020.
Under
the EPFO’s Employees’ Deposit Linked Insurance Scheme all surviving dependent
family members of the members of this scheme are eligible to avail benefits of
EDLI in case of death in harness of the member.
At
present under this scheme, the benefits extended in case of death of a worker
are no requirement of minimum service for payment of Gratuity, family pension
is paid as per provisions under EPF & MP Act, sickness benefit of 70 per
cent of wages for 91 days in a year is paid in the event of worker falling sick
and not attending office.
A
notification issued by the Ministry has made following amendments in the
scheme.
Firstly,
the amount of maximum benefit has been increased from 6 lakhs to 7 lakhs to the
family members of deceased employees.
Secondly,
minimum assurance benefit of Rs. 2.5 lakh to eligible family members of deceased
employees who was a member for a continuous period of 12 months in one or more
establishments preceding his death in place of existing provision of continuous
employment in the same establishment for 12 months. It will benefit
contractual/casual labourers who were losing out on benefits due to conditions
of continuous one year in one establishment.
The
government has also restored provision of minimum 2.5 lakh compensation
retrospectively, i.e., from 15th February 2020.
In
the coming 3 years, the actuary has estimated that eligible family members will
get an additional benefit of Rs. 2185 crore from EDLI fund in the years 2021-22
to 2023-24.
The
number of claims on account of death under the scheme has been estimated to be
about 50,000 families per year including an increase in claims taking into
account the estimated death of about 10,000 workers, which may occur due to
COVID.
''These welfare measures will provide the much-needed support to the families of workers who have died due to the COVID-19 disease and will protect them from financial hardships in these challenging times of pandemic,'' the statement added.