The Prime Minister Narendra Modi-led Government of India has announced two major measures for those families who have lost the earning member due to Covid, to mitigate financial difficulties that may be faced by them. Firstly, the government have decided to provide family pension to such families and secondly, provide them with enhanced & liberalised insurance compensation.
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Key Facts relating to the schemes
- Family Pension under Employees State Insurance Corporation (ESIC)
- Dependent family members of such persons will be entitled to get the benefit of a pension equivalent to 90% of the average daily wage drawn by the worker as per the existing norms.
- This benefit will be applicable with effect from 24 March 2020 till 24 March 2022.
2. Employees Provident Fund Organization- Employees’ Deposit Linked Insurance Scheme (EDLI)
- The insurance benefits under the EDLI scheme have been enhanced and liberalized, particularly to help the families of employees who have lost their lives due to COVID.
- The amount of maximum insurance benefit has been increased from Rs 6 lakh to Rs. 7 lakh.
- The provision of minimum insurance benefit has been retained at Rs. 2.5 lakh.
- This benefit will apply retrospectively from 15 February 2020 for the next three years, that is 15 February 2022.