Labour Law Gazette Notifications

Central

The Employees Deposit Linked Insurance (Amendment) Scheme, 2018

As per the Employees Deposit Linked Insurance (Amendment) Scheme, 2018 published in the gazette dated 15th February 2018, the Central Government has amended the Employees’ Deposit Linked Insurance Scheme, 1976 and has brought important amendments whereby the assurance benefits shall not be less than two lakhs and fifty thousand rupees and further that the assurance benefit shall not exceed six lakhs under para 22 (3). The said changes shall be in force for a period of two years from 15th February 2018. For example, as per Para 22 (3) the calculation will be as follows: Assuming the average monthly wages drawn to be INR 15,000, during the twelve months preceding the month in which he died and multiplying this sum by thirty times, it equals INR 4,50,000. Plus fifty per cent. of the average balance in the account of the deceased in the Fund or of a provident fund exempted under section 17 of the Act or under paragraph 27 or 27A of the Employees’ Provident Funds Scheme, 1952, as the case may be, during the preceding twelve months or during the period of his membership, whichever is less subject to a ceiling of one lakh and fifty thousand rupees (assuming in this example, the average balance is above 300000), it will be INR 1,50,000. Thus, Total Assurance benefit (maximum possible) INR 6,00,000 (4,50,000 + 1,50,000). The Minimum assurance benefit irrespective of the average salary of the deceased employee along with all the accumulations and calculations made under Paragraph 22 (3) shall be awarded at INR 2,50,000. This means that no matter the sum amounting after calculation, assurance benefit of INR 2,50,000 minimum is guaranteed