In order to provide relief to workers amid Covid-19 pandemic, the Ministry of Labour and Employment has announced further advantages for households of insured persons covered beneath the ESIC and EPFO’s EDLI schemes. The Government has decided to provide pension to dependents of insured persons, covered beneath the ESIC scheme, who died due to COVID-19. A hike in maximum sum assured beneath the Employees’ Deposit Linked Insurance Scheme (EDLI) beneath EPFO to Rs 7 lakh from Rs 6 lakh has also been announced.
“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 well-being of their family members due to increase in incidences of death due to COVID -19 pandemic. Enhanced social security is sought to be provided to the workers without any additional cost to the employer,” the Ministry of Labour and Employment mentioned in a statement.
Who will advantage?
“The additional social security benefits announced by Government are available for those who are covered under the Employee’ State Insurance Act 1948 (ESI Act) and Employees’ Provident Fund and Miscellaneous Provisions Act, 1952 (EPF Act). Employees whose monthly wages do not exceed Rs 21,000 are eligible to be covered under the ESI Act; monthly wage not exceeding Rs 15000 makes an employee eligible for coverage (unless already covered before monthly wage exceeded Rs 15000 and has not withdrawn membership) under EPFO,” mentioned Pooja Ramchandani, Partner, Shardul Amarchand Mangaldas & Co.
What’s new for insured persons beneath ESIC?
After death or disablement of the insured persons (IPs) beneath ESIC due to employment injury, a pension equivalent to 90 per cent of typical day-to-day wage drawn by the worker is obtainable to the spouse and widowed mother for life extended and for children till they attain the age of 25 years. For the female kid, this advantage is obtainable till her marriage.
The contribution to the ESIC fund is made by each employer and employee to avail the sickness and death advantages prescribed beneath the ESI Act. The Government has expanded the scope of availing dependent advantages to involve covid deaths.”
“Now, the dependent benefit has been extended for death due to covid subject to the conditions that the insured person has been registered on the ESIC portal three months prior to diagnosis of covid and contributions for at least 78 days has been paid or payable during one year preceding the diagnosis,” mentioned Ramchandani.
The above announcement will be efficient for two years from 24th March 2020.
Benefit beneath EPFO
According to the guidelines of EPFO’s Employees’ Deposit Linked Insurance (EDLI) Scheme, all surviving dependent family members of the members are eligible to avail advantages of EDLI in case of death in harness of the member. Currently, the advantages 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 beneath EPF & MP Act. Sickness advantage of 70 per cent of wages for 91 days in a year is paid if the worker falls sick and fail to attend workplace.
Through a notification, the quantity of maximum advantage has been improved from Rs 6 lakhs to Rs 7 lakhs to the family members of the deceased employee covered beneath EDLI. A minimum assurance advantage of Rs 2.5 lakh has been offered to eligible family members of deceased employee, who was a member for a continuous period of 12 months in one or more establishments preceding his death in spot of current provision of continuous employment in the identical establishment for 12 months.
“The insurance benefit under the Employees’ Deposit-Linked Insurance Scheme framed under the EPF Act was increased to Rs 7 lakh from Rs 6 lakh, to be availed by families of members who succumbed to covid. This is a beneficial change not only because of increase in the quantum of benefit but also because it can be availed irrespective of change in employment, thereby will render financial support to the families of the deceased member,” mentioned Ramchandani.
“However, for those who are not covered under ESI Act and EPF Act and have no other means of financial support, their plight continues,” she added.