As a major aspect of the budgetary package worth Rs 1.7 lakh crore to manage the COVID-19 pandemic, the government on Thursday reported measures for organized workers by bearing the commitment to the Employees’ Provident Fund for low-income workers, loosening up withdrawal conditions from the EPF represent its members alongside an insurance scheme for health workers.
Government to pay 24% EPFO contribution for three months
Safai karamcharis, medical attendants, ward boys, paramedics, technicians, specialists, and other health workers would be secured by a special insurance scheme, wherein in the event that while treating COVID-19 patients they meet with some mishap, the compensation of Rs 50 lakh would be given.
All government health centers, wellness centers and hospitals of Center and States would be secured under this plan with roughly 22 lakh health workers expected to be given insurance.
For the organized sector under EPFO, the government declared that it’ll pay both employees’ and employers’ monthly contributions under the Employees’ Provident Fund (EPF) for laborers acquiring below Rs 15,000 every month in foundations having up to 100 workers. This is evaluated to have a financial outgo of around Rs 5,000 crore.
The government has also allowed laborers a non-refundable advance of up to 75 percent of their credit or three months of wages, whichever is lower.
Finance Minister Nirmala Sitharaman said the administration will pay 24 percent, including 12 percent of the businesses’ commitment and 12 percent of the workers’ commitment, of the month to month EPF commitment for the following three months
“This may benefit 80 lakh employees and expected to incentivise 4 lakh establishments,” she said.
Sitharaman further said that the EPF scheme regulations would be altered in view of the common pandemic circumstance to permit a non-refundable development of up to 75 percent of the sum remaining to the credit to the part or three months of wages, whichever is lower.
“This is expected to benefit 4.8 crore workers registered with EPFO,” she said.
Under the EPF scheme, employees and employers need to contribute an equal amount of 12 percent of the employees’ basic salary plus to dearness allowance. From the employer’s EPF commitment, 8.33 percent is set apart for the Employee Pension Scheme and the staying to the PF account of the employer. The EPS segment is dependent upon a pay top of Rs 15,000, or actual basic pay, whichever is lower.