The Central Board of Trustees of the Employee Provident Fund (EPF) Organisation today cleared the proposal to introduce a multi-benefit employees insurance scheme to provide unemployment assistance to EPF beneficiaries.
Labour minister Sahib Singh Verma told reporters after a meeting of the board of trustees here that the scheme envisaged payment equal to 50 per cent of the last salary drawn as unemployment benefit.
The benefit will be available for 12 months and conditions will apply for awarding it.
He said the government would move a Bill to amend the EPF Act to enable employers to contribute 1.25 per cent and employees 0.5 per cent of the wages towards the new scheme.
Though the finance ministry had approved the scheme, it had reservations on the suggestion that the government should also make a contribution of at least 0.25 per cent towards it.
Verma said the proposed amendment would enable his ministry to frame more welfare schemes for workers. The EPF central board of trustees also approved business process re-engineering for redesigning its accounting practices.