Subscribers of provident fund get life insurance cover of up to Rs6 lakh

Did you know: Subscribers of provident fund get life insurance cover of up to Rs6 lakh

The employee does not have to bear any extra cost to avail the life insurance cover. The employees’ contribution to the PF covers all the costs

If you work in the organised sector, then a portion of your salary goes towards your Employees’ Provident Fund (EPF) account every month. This amount qualifies for tax deduction and also earns interest.

Apart from that, this contribution to EPF also entitles you to a life insurance cover.

The cover is called the Employee Deposit Linked Insurance (EDLI), and in case of death of a provident fund (PF) subscriber, it is payable to the subscriber’s heirs.

Who is covered

The scheme covers all those who are employed in the organised sector and contribute to a provident fund.

It is the responsibility of the employers to ensure that all their employees are subscribed to the EPF schemes.

The terms and conditions of the EDLI scheme are set by the EPFO.

However, if some employers provide a separate life insurance cover to their employees, they may seek the consent of the Employees’ Provident Fund Organisation (EPFO) to opt out of this insurance scheme.

The employee does not have to bear any extra cost to avail the life insurance cover. The employees’ contribution to the PF covers all the costs.

Insurance amount

The maximum amount that the family of a deceased can claim, was increased recently. The increase was announced in September 2015, and notified in May this year.

As per the new notification, a life cover of up to Rs6 lakh can be claimed by the nominee or legal heir of the provident fund subscriber.

The cover is calculated on the basis of the average monthly salary drawn in the 12 months preceding the death of the employee. The highest salary that can be considered for this purpose is Rs15,000. Salary here means basic plus dearness allowance.

The family can claim 30 times the average salary, calculated in this manner.

Along with this: 50% of the balance in the subscriber’s EPF account, or Rs 1.5 lakh—whichever is less—can be claimed as bonus. And the life cover, along with the bonus, is subject to a limit of Rs6 lakh.

This is irrespective of the age of the employee.

Claim process

In case of death of an employee, the nominee can claim the insured amount. Documents such as death certificate, succession certificate, and bank details need to be provided to claim the insurance money.

If there is no nominee in a provident fund account, the legal heir can claim this amount.

The claim form for EDLI should, ideally, be submitted along with the claim form for EPF withdrawal to the employer.

The application needs to be attested by the employer under whom the provident fund member was last employed.

The claim can only be initiated if the death occurred while the provident fund subscriber was employed in active service. The cover extends to beyond working hours and leave days.

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Labour Welfare Fund (LWF) applicable and not applicable in State

Labour Welfare Fund (LWF)
Applicable States
S.No.	States
1.	Andhra Pradesh
2.	Chandigarh (Same as in Punjab)
3.	Chattisgarh
4.	Daman and Diu (Same as in Goa)
5.	Delhi
6.	Goa
7.	Gujarat
8.	Haryana
9.	Karnataka
10.	Kerala
11.	Madhya Pradesh
12.	Maharashtra
13.	Punjab
14.	Tamilnadu
15.	West Bengal
Non - Applicable States
1.	Andaman and Nicobar Island
2.	Arunachal Pradesh
3.	Assam
4.	Bihar
5.	Dadra and Nagar Haveli
6.	Himachal Pradesh
7.	Jammu and Kashmir
8.	Jharkhand
9.	Lakshadeep
10.	Manipur
11.	Maghalaya
12.	Mizoram
13.	Nagaland
14.	Orissa
15.	Punduchery
16.	Rajasthan
17.	Sikkim
18.	Tripura
19.	Uttar Pradesh
20.	Uttarakhand

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Professional Tax Applicable/Not Applicable in States

Professional Tax Applicable in States
S.No.	States
1.	Andhra Pradesh
2.	Assam
3.	Bihar
4.	Chattisgarh
5.	Gujarat
6.	Karnataka
7.	Kerala
8.	Madhya Pradesh
9.	Maharashtra
10.	Manipur
11.	Meghalaya
12.	Mizoram
13.	Orissa
14.	Puducherry
15.	Tamil Nadu
16.	Tripura
17.	West Bengal
Professional Tax Not Applicable in States
S.No.	States
18.	Arunachal Pradesh
19.	Delhi
20.	Goa
21.	Haryana
22.	Himachal Pradesh
23.	Jammu & Kashmir
24.	Jharkhand
25.	Nagaland
26.	Punjab
27.	Rajasthan
28.	Sikkim
29.	Uttar Pradesh
30.	Uttaranchal
31.	Andaman & Nicobar
32.	Chandigarh
33.	Daman & Diu
34.	Dadra & Nagar Haveli
35.	Lakshadeep

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e-Compliance

Ease of Compliance (e-Compliance) to maintain electronic registers envisaged in various Labour Laws

Digitization of Labour related records/registers by establishments / business units for ease in compliance - reg.

1. Ministry of Labour & Employment (MoLE) has taken a number of initiatives to bring transparency and accountability in enforcement of Labour Laws and also in reducing complexity in compliance due to multiplicity of Labour Laws and enforcement agencies. A Unified Shram Suvidha Portal has been launched by the Ministry of Labour & Employment since 16.10.2014, to facilitate transparent risk-based inspections, their timely reporting and submission of returns etc.

2. As per the provisions under various Central Labour legislations and the Rules made thereunder, establishments/business units have to maintain various registers and documents. Digitization of these Registers and other related documents has the potential to achieve economy and efficiency in working environment.

3. With introduction of Information Technology Act 2000, the maintenance of such registers is also being accepted in electronic format. Section 4 of the Information Technology Act, 2000 provides that “Where any law provides that information or any other matter shall be in writing or in the typewritten or printed form, then, notwithstanding anything contained in such law, such requirement shall be deemed to have been satisfied if such information or matter is rendered or made available in an electronic form; and accessible so as to be usable for a subsequent reference”.

4. In view of the above, Ministry of Labour & Employment has envisaged digitization of these labour related records and to move towards a regime of online maintenance of all labour-related records by establishments and integrate the same with Shram Suvidha Portal, to lessen the burden of avoidable compliance. To proceed further in this direction, a Concept Note on the issue has been prepared (copy enclosed)

5. Comments/suggestions of stakeholders/other members public are invited on this proposal for consideration in the Ministry of Labour & Employment. It is requested that the comments/suggestions should reach the Ministry within one month time from the date of issuance, on the address S. K. Tripathi, Under Secretary (LRC), Ministry of Labour & Employment, Room No. 17, Shram Shakti Bhavan, Rafi Marg, New Delhi – 110001, or through email to sushil.tripathi@nic.in.

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Minimum wages have been simultaneously revised for agricultural and non-agricultural sector workers for the first time

Recent minimum wage revision to benefit 70 lakh workers, says Labour Minister Bandaru Dattatreya

Minimum wages have been simultaneously revised for agricultural and non-agricultural sector workers for the first time.

The recent revision of minimum wages for the agri and non-agri sector workers would benefit 70 lakh people, Labour Minister Bandaru Dattatreya said on Friday September 16, 2016. “For the first time, minimum wages have been simultaneously revised for agricultural and non-agricultural sectors. This will benefit 70 lakh workers,” he said at the Vishwakarma Rashtriya Puraskar and National Safety Awards function held in New Delhi. The Labour Ministry, quoting Dattaterya, added that the government has also revised the minimum wages for unskilled non-farm workers upwards by 42 per cent to Rs 350 per day.

“We have also increased bonus from Rs 3,500 to Rs 7,000 or minimum wages whichever is higher. Eligibility ceiling for bonus has been raised from Rs 10,000 to Rs 21,000. This will benefit 65 lakh workers,” the Minister said. Besides, the minimum pension has been fixed at Rs 1,000 in EPS-95 in perpetuity, which will benefit 20 lakh pensioners, Dattatreya added.

He was referring to Labour Ministry amending the Employees Pension Scheme (EPS) 1995, to provide the entitlement of minimum monthly pension of Rs 1,000 in perpetuity. Congratulating the award winners, the Minister said that they should become leading lights in promotion of safety in their respective organisations for years to come.

“I would like to impress upon them that they should work with the same vigour, dedication and commitment as well as contribute in an exemplary manner to the overall industrial and economic development of India such that it clinches a significant space among the industrialised nations,” he added. Industrial peace and harmony can be achieved only when the goals of employment and employability are in tune with the targets of industrial development and growth, he said.

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ESI Benefits

ESI Benefits 

The section 46 of the Act envisages following six social security benefits :- 

(a) Medical Benefit : Full medical care is provided to an Insured person and his family members from the day he enters insurable employment. There is no ceiling on expenditure on the treatment of an Insured Person or his family member. Medical care is also provided to retired and permanently disabled insured persons and their spouses on payment of a token annual premium of Rs.120/- .

1. System of Treatment

2. Scale of Medical Benefit

3. Benefits to Retired IPs

4. Administration of Medical Benefit in a State

5. Domiciliary treatment

6. Specialist consultation

7. In-Patient treatment

8. Imaging Services

9. Artificial Limbs & Aids

10. Special Provisions

11. Reimbursement

(b) Sickness Benefit(SB) : Sickness Benefit in the form of cash compensation at the rate of 70 per cent of wages is payable to insured workers during the periods of certified sickness for a maximum of 91 days in a year. In order to qualify for sickness benefit the insured worker is required to contribute for 78 days in a contribution period of 6 months.

1. Extended Sickness Benefit(ESB) : SB extendable upto two years in the case of 34 malignant and long-term diseases at an enhanced rate of 80 per cent of wages.

2. Enhanced Sickness Benefit : Enhanced Sickness Benefit equal to full wage is payable to insured persons undergoing sterilization for 7 days/14 days for male and female workers respectively.

(c) Maternity Benefit (MB) : Maternity Benefit for confinement/pregnancy is payable for three months, which is extendable by further one month on medical advice at the rate of full wage subject to contribution for 70 days in the preceding year. 

(d) Disablement Benefit

1. Temporary disablement benefit (TDB) : From day one of entering insurable employment & irrespective of having paid any contribution in case of employment injury. Temporary Disablement Benefit at the rate of 90% of wage is payable so long as disability continues.

2. Permanent disablement benefit (PDB) : The benefit is paid at the rate of 90% of wage in the form of monthly payment depending upon the extent of loss of earning capacity as certified by a Medical Board

(e) Dependants' Benefit(DB) : DB paid at the rate of 90% of wage in the form of monthly payment to the dependants of a deceased Insured person in cases where death occurs due to employment injury or occupational hazards. 

(f) Other Benefits : 
Funeral Expenses : An amount of Rs.10,000/- is payable to the dependents or to the person who performs last rites from day one of entering insurable employment. 
Confinement Expenses : An Insured Women or an I.P.in respect of his wife in case confinement occurs at a place where necessary medical facilities under ESI Scheme are not available. 

In addition, the scheme also provides some other need based benefits to insured workers. 

Vocational Rehabilitation :To permanently disabled Insured Person for undergoing VR Training at VRS.
Physical Rehabilitation : In case of physical disablement due to employment injury. 
Old Age Medical Care :For Insured Person retiring on attaining the age of superannuation or under VRS/ERS and person having to leave service due to permanent disability insured person & spouse on payment of Rs. 120/- per annum.
Rajiv Gandhi Shramik Kalyan Yojana : This scheme of Unemployment allowance was introduced w.e.f. 01-04-2005. An Insured Person who become unemployed after being insured three or more years, due to closure of factory/establishment, retrenchment or permanent invalidity are entitled to :-

· Unemployment Allowance equal to 50% of wage for a maximum period of upto one year.

· Medical care for self and family from ESI Hospitals/Dispensaries during the period IP receives unemployment allowance.

· Vocational Training provided for upgrading skills - Expenditure on fee/travelling allowance borne by ESIC.

Incentive to employers in the Private Sector for providing regular employment to the persons with disability :

· Minimum wage limit for Physically Disabled Persons for availing ESIC Benefits is 25,000/-.

· Employerss' contribution is paid by the Central Government for 3 years.

Benefits & Contributory Conditions :
An interesting feature of the ESI Scheme is that the contributions are related to the paying capacity as a fixed percentage of the workers wages, whereas, they are provided social security benefits according to individual needs without distinction.
Cash Benefits are disbursed by the Corporation through its Branch Offices (BOs) / Pay Offices (POs), subject to certain contributory conditions. 

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10,932 companies default on PF payments to EPFO

10,932 companies default on PF payments to EPFO

The numbers of defaulting companies and institutions is growing. There were 10,091 defaulters in 2014-15, rising to 10,932 by December 2015.

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Notice for empanelment as panel lawyer's

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