EPF PROPOSES MULTI-BENEFIT EMPLOYEES INSURANCE SCHEME

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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.