Labour Ministry announces major social security reliefs via ESIC, EPFO for bereaved families due to Covid-19



Quick Summary
The Ministry of Labour and Employment has introduced enhanced social security benefits for families of workers who have tragically passed away due to COVID-19. These measures aim to provide financial support without additional cost to employers. Under the ESIC scheme, dependents can receive a pension of 90% of the deceased worker's average daily wage for life, subject to certain eligibility criteria. Additionally, the EPFO's Employees' Deposit Linked Insurance Scheme (EDLI) now offers a maximum benefit of £7 lakh, with a minimum assured benefit of £2.5 lakh for eligible members, benefiting contractual and casual labourers more broadly.

Labour Ministry announces major social security relief to dependents of workers passing away due to COVID-19 The Ministry of Labour and Employment has announced additional benefits for workers through ESIC and EPFO schemes to address the fear and anxiety of workers about well-being of their family members due to increase in incidences of death due to COVID -19 pandemic. Enhanced social security is sought to be provided to the workers without any additional cost to the employer. Currently f
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FAQ :

Families can receive enhanced social security benefits through ESIC and EPFO. This includes a pension of 90% of the deceased's average daily wage under ESIC and an increased maximum benefit of £7 lakh under EPFO's EDLI scheme.

The deceased worker must have been registered on the ESIC online portal at least three months before COVID diagnosis and had contributions paid or payable for at least 78 days in the year preceding diagnosis.

The pension is available for life for the spouse and widowed mother, and for children until they reach the age of 25. For female children, the benefit is available until marriage.

The maximum benefit has been increased from £6 lakh to £7 lakh. A minimum assurance benefit of £2.5 lakh is now available for eligible members who were employed for 12 months continuously.

Yes, the revised provision of a minimum £2.5 lakh compensation retrospectively benefits contractual and casual labourers who previously lost out due to the condition of continuous employment in one establishment.

The ESIC scheme is effective for a period of two years from 24th March 2020. The revised EPFO EDLI minimum compensation is effective retrospectively from 15th February 2020.




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