LAHORE, Nov 22: The Punjab government has considerably increased the group insurance amount for all categories of its officials and officers by amending the Government Employees Welfare Fund Ordinance.

According to the provincial law department officials on Thursday, the new rates would be applicable (with immediate effect) from July 1, 2007, and they had been introduced through The Punjab Government Employees Welfare Fund (Amendment) Ordinance, 2007.

The new rates are: BS-1 to 4: Rs150,000, BS-5 to 10 Rs175,000, BS-11 to 15 Rs300,000, BS-16 Rs450,000, BS-17 Rs600,000, BS-18 Rs875,000, BS-19 Rs1,050,000 and BS-20 and above Rs1,250,000.

The previous rates were: BS-1 to 4 Rs120,000, BS-5 to 10 Rs140,000, BS-11 to 15 Rs240,000, BS-16 Rs360,000, BS-17 Rs480,000, BS-18 Rs700,000, BS-19 Rs840,000 and BS-20 and above Rs1 million.

The ordinance has also clarified the definition of the government employees who would benefit from the scheme, keeping the federal government employees out of its ambit.

The facility would not also be provided to the contract employees. It was given to them in the previous law but denied actually. Now they would have to arrange for such insurance by themselves.

The insurance would be paid to the family of those deceased employees who have retired from service on superannuation, and five years afterwards. It would not be applicable on those seeking early retirement or getting extension in service beyond the age of 65 years.

The contribution would be deducted from their salaries at source only up to the age of superannuation. The five years afterwards would automatically be covered without any contribution.

The amendment ordinance has also abolished the divisional welfare boards because of the reason that divisions do not exist any more.

Now, there would be two provincial welfare boards, one for the gazetted and another for the non-gazetted employees of the provincial government.