EPFO’s life in­sur­ance cover to stay for 3 yrs af­ter loss of job

Hindustan Times ST (Mumbai) - HT Navi Mumbai Live - - NEWS - Bra­jesh Ku­mar letters@hin­dus­tan­times.com

The next time you’re out of a job, don’t worry about your life in­sur­ance. The gov­ern­ment will cover it as long as you get em­ployed in the next three years.

The state-run Em­ploy­ees’ Prov­i­dent Fund Or­gan­i­sa­tion (EPFO) plans to pro­vide life in­sur­ance to peo­ple out of a job for up to three years, charg­ing a nom­i­nal pre­mium amount.

The move will help thou­sands of or­gan­ised sec­tor work­ers who lose their safety net the mo­ment they’re un­em­ployed, a ma­jor hand­i­cap in a coun­try where only 3% peo­ple have life in­sur­ance.

The pro­posal comes days af­ter the gov­ern­ment was forced to scrap pro­posed changes to prov­i­dent fund with­drawals fol­low­ing vi­o­lent protests by thou­sands of gar­ment work­ers in Ben­galuru.

The de­ci­sion to pro­vide in­sur­ance cover is ex­pected to re-build the im­age of the gov­ern­ment that was ac­cused to anti-poor by the Op­po­si­tion af­ter pro­posed changes barred work­ers from with­draw­ing their en­tire re­tire­ment fund if un­em­ployed for at least two months.

Ev­ery month, salaried in­di­vid­u­als con­trib­ute 12% of their pay to the EPF ac­count. The em­ployer puts in an iden­ti­cal sum, 0.5% of which is ear­marked for the Em­ployee’s De­posit Linked In­sur­ance (EDLI) Scheme.

Un­der this ini­tia­tive, each em­ployee is guar­an­teed an in­sur­ance rang­ing be­tween Rs5,000 and `6 lakh, depend­ing upon the salary and du­ra­tion of ser­vice ir­re­spec­tive of the ac­tual bal­ance in the prov­i­dent fund.

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