Labour Ministry announces additional benefits for COVID-19 hit families under EPFO scheme; Here's the list

On Sunday, May 31, the Union Labour Ministry announced some additional benefits for workers through social securities schemes run by the Employees' Provident Fund Organisation (EPFO) and the Employees’ State Insurance Corporation (ESIC).

This development comes amid the second wave of coronavirus to address the fear and anxiety of those who lost their earning family member due to the pandemic.

An official statement released by the ministry read: “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 wellbeing of their family members due to increase in incidences of death due to COVID-19 pandemic.”

Labour Ministry announces major social security relief through #ESIC & #EPFO Schemes to dependents of workers passing away due to #COVID-19.#IndiaFightsCoronahttps://t.co/FEnpkAx1v2 pic.twitter.com/8byBisksY4

— Ministry of Labour (@LabourMinistry) May 30, 2021

Currently, for the insured persons (IPs) under the ESIC, after death or disablement of the IP due to employment injury, a pension equivalent to 90 per cent of the 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. However, for the female child, the benefit is available till her marriage.

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The statement also stated that to support the families of IPs 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 two conditions:

• Firstly, 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 fulfil the eligibility conditions, and have died due to COVID disease, their dependents will be entitled to receive monthly payment at the rate of 90 per cent of the average daily wages of the insured person during their life.

Here's a list of the Centre's benefits under EPFO scheme for COVID-19 hit families:

• Pension for dependents of insured persons with ESIC who died due to COVID-19 and hike in maximum sum assured under the group insurance scheme EDLI, run by EPFO, to INR 7 lakhs from INR 6 lakhs.
• The minimum assurance benefit of INR 2.5 lakhs 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 the condition of continuous one year in one establishment.
• The restoration of provision of minimum INR 2.5 lakhs compensation retrospectively, i.e., from February 15, 2020.
• In the coming three years, the actuary has estimated that eligible family members will get an additional benefit of INR 2,185 crores 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-19.

These welfare measures will provide the much-needed support to the families of workers who have died due to coronavirus and will protect them from financial hardships in these challenging times of pandemic, the statement explained.

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