EPF PROPOSES MULTI-BENEFIT EMPLOYEES INSURANCE SCHEME
The
Employees Provident Fund Organisation proposes to introduce a
Multi-benefit Employees Insurance Scheme. The proposed Scheme
will benefit those EPF beneficiaries who have lost the jobs as
a result of the ongoing economic restructuring. The Executive
Committee constituted by the Central Board of Trustees to make
a detailed study, has approved the proposed scheme to provide
benefits by way of unemployment assistance. It would require amendment
to the Employees Provident fund and Miscellaneous Provisions Act,
1952. The proposed amendment would convert the existing Employees
Deposit Linked Insurance Schemes, 1976 to Multi-Benefit Employees
Insurance Scheme, retaining the existing death benefits without
any change. Under the amended scheme any employee who loses the
job as specified in the scheme will be entitled for a monthly
unemployment insurance benefit for a specified period subject
to graded rates linked to the age and membership.
The
Scheme envisages a small contribution both by employer and employees
during the tenure of employment. The Executive Committee after
extensive deliberations has recommended that employer would contribute
1.25% and employee 0.5% of the wage to the new scheme. The Committee
has also suggested that government should also make a contribution
at least at the rate of 0.25% so that half of the last wage for
one year can be given as employment insurance to the member.
The
recommendations of the Executive Committee would have to be approved
by the Central Board of Trustees (CBT) to go ahead with the necessary
amendments to the EPF & M.P. Act.
