Government extends ESIC pension scheme to families of Covid-19 victims

The government on Saturday extended the benefit of ESIC pension scheme for employment-related deaths to Covid-19 cases as well to enable dependents of such employees to avail the pension.

It also announced the increase of maximum insurance benefit under Employees’ Deposit Linked Insurance Scheme (EDLI) of the Employees Provident Fund Organization from Rs 6 lakh to Rs 7 lakh to beneficiaries, including families of employees who died due to Covid-19.

Prime Minister Narendra Modi said the government stands in solidarity with families of employees and efforts are being made to mitigate financial difficulties that may be faced by them.

An official statement said the liberalisation of the family pension under Employees State Insurance Corporation (ESIC) is aimed at helping families live a life of dignity and maintain a good standard of living.

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The benefit of ESIC pension scheme for employment-related death cases is being extended to even those who have died due to Covid-19. Dependent family members of such persons will be entitled to the benefit of pension equivalent to 90 per cent of average daily wage drawn by the worker as per the existing norms, it said.

This benefit will be available retrospectively with effect from 24 March, 2020 and for all such cases till 24 March, 2022.

The liberalised EDLI scheme will in particular help the families of employees who have lost their lives due to Covid-19, the statement said.

Besides an increase in the amount of maximum insurance benefit to Rs 7 lakh, the provision of minimum insurance benefit of Rs 2.5 lakh has been restored and will apply retrospectively from 15 February, 2020 for the next three years.

"To benefit families of contractual/casual workers, the condition of continuous employment in only one establishment has been liberalized, with benefits being made available to families of even those employees who may have changed jobs in the last 12 months preceding his death," the statement added.