Hyderabad : 01/06/2021
Govt announces scheme to provide pension for dependents of COVID-19 victims
Reuters
Synopsis
As per the plan, benefits of ESIC pension scheme for employment related death cases are being extended to even those who have died due to Covid. Thus, dependent family members of such persons will be entitled to the benefit of pension equivalent ...
The government, on Saturday said, it will provide pension benefits to families of the beneficiaries covered under the Employees State Insurance scheme and Employees Provident Fund scheme who have died due to Covid.
The announcement comes after Prime Minister Narendra Modi announced relief for Covid affected children under the PM CARES for children scheme.
“The government stands in solidarity with their families. Efforts are being made to mitigate financial difficulties that may be faced by them,” Prime Minister's Office said in a statement.
“This will be a major help and will give confidence to workers to go out for work.” labour secretary Apurva Chandra said.
As per the plan, benefits of ESIC pension scheme for employment related death cases are being extended to even those who have died due to Covid. Thus, dependent family members of such persons will be entitled to the benefit of pension equivalent to 90% of average daily wage drawn by the worker as per the existing norms.
“This benefit will be available retrospectively with effect from March 24, 2020 and for all such cases till March 24, 2022,” it said.
However, the insured person must have been registered on the ESIC online portal at least three months prior to the diagnosis of COVID disease resulting in death. Further, 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.
Further, the enhanced insurance benefits under the Employee Deposit Linked Insurance scheme of EPFO will in particular help the families of employees who have lost their lives due to COVID, it said. This provision could be availed by 6.53 crore families who are eligible under the scheme.
The labour ministry had recently notified a maximum insurance benefit of Rs 7 lakh compared to Rs 6 lakh earlier while providing for a minimum insurance benefit of Rs 2.5 lakh retrospectively February 15, 2020 for the next three years.
“To benefit families of contractual and casual workers, the condition of continuous employment in only one establishment has been liberalized, with benefits being made available to families of even those employees who may have changed jobs in the last 12 months preceding his death,” PMO said.
The labour ministry has estimated that eligible family members will get an additional benefit of Rs 2185 crore from EDLI fund in the years 2021-22 to 2023-24 with number of claims on account of death under the scheme estimated at about 50,000 families per year including increase in claims taking into account estimated death of about 10,000 workers which may occur due to Covid.
The announcement comes after Prime Minister Narendra Modi announced relief for Covid affected children under the PM CARES for children scheme.
“This will be a major help and will give confidence to workers to go out for work.” labour secretary Apurva Chandra said.
As per the plan, benefits of ESIC pension scheme for employment related death cases are being extended to even those who have died due to Covid. Thus, dependent family members of such persons will be entitled to the benefit of pension equivalent to 90% of average daily wage drawn by the worker as per the existing norms.
“This benefit will be available retrospectively with effect from March 24, 2020 and for all such cases till March 24, 2022,” it said.
However, the insured person must have been registered on the ESIC online portal at least three months prior to the diagnosis of COVID disease resulting in death. Further, 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.
Further, the enhanced insurance benefits under the Employee Deposit Linked Insurance scheme of EPFO will in particular help the families of employees who have lost their lives due to COVID, it said. This provision could be availed by 6.53 crore families who are eligible under the scheme.
“To benefit families of contractual and casual workers, the condition of continuous employment in only one establishment has been liberalized, with benefits being made available to families of even those employees who may have changed jobs in the last 12 months preceding his death,” PMO said.
The labour ministry has estimated that eligible family members will get an additional benefit of Rs 2185 crore from EDLI fund in the years 2021-22 to 2023-24 with number of claims on account of death under the scheme estimated at about 50,000 families per year including increase in claims taking into account estimated death of about 10,000 workers which may occur due to Covid.
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