EPFO Update: Ministry of Labour Hikes Employees’ Deposit Linked Insurance Benefits From Rs 6 Lakh to Rs 7 Lakh

New Delhi, September 9: Union Minister of State for Labour & Employment Santosh Gangwar on Wednesday launched virtual hearing facility in quasi-judicial cases under Employees Provident Funds & Miscellaneous Provisions Act, 1952. The Ministry informed that the Central Board of Trustees of EPF increased the maximum assurance benefit to up to Rs 7 lakh under the Employees’ Deposit Linked Insurance (EDLI) scheme.

Informing about the latest development, the Union Government said, as quoted by news agency, "Santosh Gangwar, MoS Labour & Employment launched virtual hearing facility in quasi-judicial cases under Employees Provident Funds & Miscellaneous Provisions Act, 1952 through video conferencing by use of IT applications compatible with desktop/laptop/mobile phones." EPFO to Credit Part of 8.5% Interest on Employees Provident Fund Into 6 Crore Subscribers' Accounts for FY 2020.

Adding more, it said, "Central Board of Trustees, EPF accorded approval for amendment of paragraph 22(3) of Employees’ Deposit Linked Insurance Scheme, 1976 to enhance the maximum assurance benefit to Rs 7 lakhs from the present maximum assurance benefit of Rs 6 lakhs."

Here's what the government said:

EPFO, under the EDLI scheme, mandatorily provides credit to subscribers of the EPF scheme to contribute towards life insurance. The EDLI provides a lump sum payment to the insured’s nominated beneficiary if the insured person dies due to natural causes, illness or accident.

Earlier in the day, EPFO decided to credit a part of 8.5 per cent interest on employees provident fund (EPF) for 2019-20 into the account of its around 6 crore subscribers. The government will credit the remaining 0.35 per cent rate of interest on EPF for 2019-20 into the subscribers account in December this year.

Informing about the details, EPFO said in a statement, "While there was an increase in the number of advance claims, there was a significant decline of about 35 per cent in the number of final PF settlement claims from April-August 2020 period as compared with April-August 2019. Final PF Settlement claim allows members to withdraw their PF balance after quitting their job, superannuation, termination or at the time of retirement."

(The above story first appeared on LatestLY on Sep 09, 2020 06:22 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).