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PF body proposes unemployment assistance scheme

The Employees Provident Fund Organisation proposes to introduce a multi-benefit employees insurance scheme for those EPF beneficiaries who have lost their jobs as a result of the ongoing economic restructuring.

The unemployment assistance scheme has been approved by the executive committee constituted by the Central Board of Trustees of EPF, official sources said on Tuesday.

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

The scheme envisages a small contribution both by the employer and employees during the tenure of employment. It has been recommended that the employer will contribute 1.25 per cent and the employee 0.25 per cent of the wage to the new scheme.

It has been suggested that the government should also make a contribution at the rate of 0.25 per cent, at least, so that half of the last wage for one year can be given as employment insurance to the member, they added.

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