Employees Provident Fund Organization (EPFO) can increase the life Insurance amount of its account holders. Discussions have started in EPFO about this. According to sources, the maximum insurance amount is being increased from the current Rs 6 lakh to Rs 10 lakh and the minimum insurance amount will be increased from Rs 2.5 lakh to Rs 4 lakh.
Central Board of Trustees member Virjesh Upadhyay says that from time to time, the EPFO deliberates on many things. Not necessarily all are implemented. EPFO will be judged on all aspects, which will be better.
Need to increase insurance amount
According to sources, EPFO believes that at present the insurance amount of its account holders is quite low in the current circumstances. It needs to be increased, but whether it should be increased or when to increase it, a decision will be taken in the Central Board of Trustees.
Good news for employed people
If you are a job worker and your PF is getting cut then you can get very good news. Actually, the EPFO has started preparations to increase the life insurance amount for its members. According to information received from sources, a proposal has been prepared to increase the amount of insurance in two phases. The proposal will be discussed in the Central Board of Trustees meeting.
PF Amount will also be taken care of
If someone is an account holder of EPFO then he gets insurance cover. The amount of insurance cover is decided based on the amount deposited in your PF account. The amount of insurance is determined on the basis of the average salary of the last 12 months after the death of the employee. While fixing the amount of insurance, 50 percent of the amount deposited in the PF account is also included.
How will be the calculation done-
Before the death of the employee, an average of 12 months basic salary and DA will be calculated. Please tell here that the maximum basic salary will be counted to 15000. This amount has to be multiplied by 30 and 50% of the amount deposited in the PF account will be added. If an employee's salary (basic + dearness allowance) is 10 thousand rupees to understand it in easy language, then he will get 10,000×30 = Rs. 300,000, with 50% of the amount deposited in the PF account. Currently the minimum amount is 2.5 lakh and maximum is 6 lakh rupees.
