Payroll, Domestic Inquiry, Administration,
All employers to whom the Employee's Provident Fund and Miscellaneous Provisions Act, 1952 applies, have a statutory liability to contribute to Employee's Deposit Linked Insurance scheme, 1976 to provide the benefit of Life Insurance to all their employees.
Under the scheme as amended with effect from 18th June, 2010
a) Insurance benefit is the average balance of the Provident Fund during the last 12 months (Provided that such balance does not exceeds Rs.1,00,000/- INR)
b) Insurance cover would be equal to Rs.50,000 plus 40% of the amount in excess of Rs.50,000 subject to a maximum of Rs.1,00,000.
c) The contribution @ 0.50% of each employee's salary is payable by the Employer to the Provident Fund Authorities.
a) If PF deposit is Rs.50,000, EDLI Benefit Rs. 50,000
b) If PF deposit Rs. 1,00,000, EDLI Benefit Rs.70,000 (50,000+20,000)
(For 1st 50,000 50,000, Next 50,000 40% of 50,000 i.e. Rs.20,000)
c) Deposit Rs. 2,00,000 EDLI Benefit Rs.1,00,000 (50,000+50,000)
(For 1st 50,000 50,000, Next 1,50,000 40% of 1,50,000 i.e. Rs.60,000 - Total - Rs. 1,10,000 (will get Rs.1,00,000 only as it exceeds 1,00,000).
Hope this is clear to you.
3rd October 2013 From India, Mumbai
3rd October 2013 From India, Kumbakonam
If an employee is under EPF Act, then he/she has to be insured by EDLI, until and unless the employer proves that the employer can provide a better insurance policy than that EPFO provides.
If an employee has Basic+DA more than Rs.6500 (let say Rs.8000), then employee will contribute 12% of Rs.8000, but the employer has to contribute 13.61% (3.67%+8.33%+1.1%+0.5%+0.01%) on only Rs.6500. There is no need to contribute on Rs.8000 by the employer.
4th October 2013 From India, Delhi
To claim EDLI benefit the main criteria is that the death must have occured while in service. In the instant if the death had occurred while in service and if he had served with the same employer for 12 months, then the benefit would be 1,30,000/-
5th October 2013 From India, Vellore