Unemployment dole likely for laid-off employees

This could be of interest to those employees who lose their jobs as a result of economic restructuring in their organisations.

The laid-off can look forward to an unemployment assistance, a form of social security, once the relevant amendment is made to existing EPF schemes.

The scheme, proposed by the executive committee set up by the Central Board of Trustees of the EPFO, envisages a small contribution both by employer and by the employee during the tenure of employment.

According to the recommendation made by the executive panel set up to study the issue, employees should contribute 0.5 per cent of their wage to the scheme and employers should match this with a 1.25 per cent contribution.

The government, it has been suggested, should at least contribute 0.5 per cent of the wage to the scheme. The idea is that employees receive at least half of the last wage for a year as employment insurance.

The relevant amendment will convert the Employees Deposit-Linked Insurance Schemes, 1976, to a Multi-Benefit Employees Insurance Scheme. This means the existing death benefits will be retained.

However, any employee who loses his job as specified in the scheme, will be entitled to a monthly unemployment insurance benefit for a specified period, subject to graded rates linked to the age and membership of the subscriber employee.

Now that the executive panel has made the proposal, the Central Board of Trustees (CBT) of the EPFO will have to approve the suggestion. After amendments are made to the existing scheme, employees who lose their jobs can look forward to some relief.
from the EPFO, even if they don’t get a regular salary.