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EFPO

 
With Indian economy hitting so hard during the second wave of Covid-19. To save the Indianeconomy and provide financial aid to the middle class population has become the primary concern of the central government.  In between the devastating times of covid, in a welcoming move the central government has amended the EDLI insurance scheme  and the ESIC provision for the benefit of the families who have lost the earning members of there family  and are struggling financially during these times.
 

EDLI benefits effective  retrospectively from 15th February 2020. 

 
EDLI is an insurance cover provided by the EPFO for salaried employees from the private  sectorBesides being a retirement fund,  EPFO offers many other benefits and one of them  is the EDLI insurance cover where a lump sump  payment is made to the registered nominee at the time of unprecedent death of the insured 
person (i.e. employee).  Central government has increased this  insurance  cover to a maximum of INR 7 Lakhs with a recent amendment. A lot of employees are not aware of this benefit and  the reason  can be the lack of guidance from the HR teams and PF consultants.
 
With the second wave hitting India, lot
 of families lost their sole earning 
member. In such  a scenario this financials aid can gives a lot of comfort to the families of the diseased. Some salient features and prerequisites for calming the EDLI insurance benefit is given below:   
 
  • Members of EPFO (i.e. employees) are   automatically enrolled for EDLI insurance scheme  and the benefits can be availed by the family members, legal heirs or nominees of the member. 
  • The employer independently makes  the contribution for EDLI and no  payment can be deducted from the employee’s salary  (CTC). 
  • This benefit is available only to the  employees working in EPF registered  entity having a continuous  employment for a period of 12 months preceding the month in which he/she died.  Change of jobs does not matter but there should be a continues employment.  
  • EDLI claim can be calculated based on  the below mentioned formula: 
  1. oEDLI claim = 35* (Average  monthly salary of past 12  months) or INR 7 lakhs (5.25 lakh basic + 1.75 lakh bonus) whichever is lower.
  2.  oAverage monthly salary =  Basic + Dearness Allowance  capped at INR 15,000
  3.  As per the recent notification, the EDLI assurance benefit shall not be less than INR 2.5 lakh and is applicable  retrospectively w.e.f. 15.02.2020. 
 
EPFO covid advance: 
EPFO has allowed its members to avail  of a second non-refundable COVID-19 advance. The provision regarding the tax-free withdrawal from EPFO was first introduced in 2020 to help the financially week category tackle the economical hit during the first covid wave.  
 
With covid hitting the economy again and much harder central government has allowed a second advance from EPFO balance to help  public cope up with the financial crises.  
 
A non-refundable withdrawal to the extent of the basic wages and dearness allowances for 3 months  or up to 75% of the amount standing to in the EPF account, whichever is less,  is provided.
 
 ESIC Pension Scheme:  
Due to covid a lot of families lost their bread earners and other close family members to the financials anxiety. 
 
Currently for the Insured Persons (IPs) under ESIC, after death or disablement of the IP  due to employment injury,  a pension equivalent to 90% 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: 
 
  • IP and his depended family members who seek this benefit should have been  registered on the ESIC online portal at  least three months before the diagnosis of COVID disease resulting in death.
  • IP must have been employed for wages and contributions for at least 78 days  and should have been paid or payable during one year immediately preceding the  diagnosis of COVID disease resulting in death. 
 
This scheme is applicable from 24th March 2020  for the period of two years. 
 
 

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