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Bcarya
Assistant Manager - Hr
Abbasiti
Assistant Engineer, Indian Telephone Industries,
+1 Other

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One of employee had worked in the organization form 01.09.2013 to 5.12.2013, regrettably he was die on 05.12.2013 , due to heart problem in the home, He is number In EPF and pension scheme ?
We have paid to him during service period Basic salary 5500 DA 8000
Age:- 28
Married status: Not married
Family Numbers: 2 (Father and mother)
My question is how to calculate to pension in this case ? and EDLI ?
Regards
Hekarthi

Dear Hekarthi, What is the meaning of "He is number In EPF and pension scheme?" plz. clear.
One of employee had worked in the organization form 01.09.2013 to 5.12.2013, regrettably he was die on 05.12.2013 , due to heart problem in the home, He had member In EPF and pension scheme his service period
We have paid to him during service period Basic salary 5500 DA 8000
Age:- 28
Married status: Not married
Family Numbers: 2 (Father and mother)
My question is how to calculate to pension in this case ? and EDLI ?
Regards
Hekarthi[/QUOTE]

Dear Hekarthi,

For calculation of Pension in this case:

16. Benefits to the family on the death of a member:

(1)[Pension to the family] shall be admissible from the date following the date of death of the member if the member dies.

' (a) while in service, provided that at least one month's contribution has been paid into the Employees' Pension Fund.

2) (a) The monthly widow pension shall be :--

' (i) in the cases covered by clause (a) of sub-paragraph (1), equal to the monthly members pension which would have been admissible as if the member had retired on the date of death or Rs 450/- or the amount indicated in Table 'C' whichever is more.

For more information on this, you can go through http://epfindia.com <link updated to site home>

For benefit under EDLI:

Paragraph 22 of Employees Deposit Linked Insurance Scheme, 1974

22. Scales of assurance benefit and the minimum average balance to be maintained by an employee. –

(1) On the death of an employee, who is a member of the Fund or of a provident fund exempted under section 17 of the Act, as the case may be, the persons entitled to receive the provident fund accumulations of the deceased shall, in addition to such accumulations be paid an amount, equal to the average balance in the account of the deceased in the Fund or of a Provident Fund exempted under Section 17 of the Act, as the case may be, during preceding twelve months or during the period of his membership, whichever is less, except where the average balance exceeds Rs.50,000 (erstwhile limit was Rs.25,000/-), the amount payable shall be Rs.50,000 (erstwhile Rs.25,000/-)plus 40% (earlier limit was 25%) of the amount in excess of Rs.50,000 (erstwhile Rs.25,000/-) subject to a ceiling of Rs. 1 lakh (earlier Rs. 35,000).

Hope this will help full to you.

Dear Hekatrthi,
As there is no eligible member within the family (spouse and children), pension will not be applicable .
EDLI is applicable which in this case is Rs. 1,30,000 (20 times of salary).
Abbas.P.S

EDLI is subject to the average PF balance of the member. Therefore, in the given case, is cannot be Rs.1,30,000/- but the total of his PF balance divided by the number of months he worked.
Regarding family pension, Please see part Part - B under Para 18 of the Scheme (see nomination form). - Here in the second part - if there is no family, you have to see whom the member has nominated under Para 16(2)(a)(1) & (ii) of the EPS Scheme. That person will receive the Pension for lifetime.

Dear Mr. Joseph 2412,
The above cited clause is amended w.e.f 08.01.2011 vide GSR 9(E). Now the above accumulation or 20 times of salary (subject to a salary ceiling of Rs. 6500) whichever is high will be as EDLI.
The maximum possible accumulation in this case is Rs. 8532, and average for one month is Rs. 2699 - (A)
20 times of 6500 is Rs. 1,30,000 - (B)
Therefore whichever is high out of (A) & (B) is (B), i.e. Rs. 1,30,000 which will be paid towards EDLI.
If there is no widow/widower and children, nominee or parents are entitled to get pension, provided member has completed 10 years' service in EPF. Here the service is only 3 months 5 days. Hence there is no question of nominee pension
Abbas.P.S

Dear Abbas P S Sir,

First of thanks for updating the information in this regard.

I have some doubt on this matter, Para 22 of EDLI Act say as:

22. Scales of assurance benefit and the minimum average balance to be maintained by an employee. –

(1) On the death of an employee, who is a member of the Fund or of a provident fund exempted under section 17 of the Act, as the case may be, the persons entitled to receive the provident fund accumulations of the deceased shall, in addition to such accumulations be paid an amount, equal to the average balance in the account of the deceased in the Fund or of a Provident Fund exempted under Section 17 of the Act, as the case may be, during preceding twelve months or during the period of his membership, whichever is less, except where the average balance exceeds Rs.50,000 (erstwhile limit was Rs.25,000/-), the amount payable shall be Rs.50,000 (erstwhile Rs.25,000/-)plus 40% (earlier limit was 25%) of the amount in excess of Rs.50,000 (erstwhile Rs.25,000/-) subject to a ceiling of Rs. 1 lakh (earlier Rs. 35,000).

The Amendment Notification say as:

G. S. R. 9 (E)-

In exercise of the powers conferred by Section 6C read with sub-section (1) of Section 7 of the Employees’ Provident Funds and Miscellaneous Provisions Act, 1952 (19 of 1952), the Central Government hereby makes the following Scheme, further to amend the Employees’ Deposit Linked Insurance Scheme, 1976, namely :-

1. (1) This Scheme may be called the Employees’ Deposit Linked Insurance (Amendment) Scheme, 2011.

' (2) It shall come into force from the date of its publication in the Official Gazette.

2. In the Employees’ Deposit Linked Insurance Scheme, 1976, in paragraph 22, after sub-paragraph (2), the following sub-paragraph shall be substituted, namely :-

“(22 A) On the death of an employee, who is member of the Fund or of a provident fund exempted under Section 17 of the Act, as the case may be, who was in the employment of the same establishment for a continuous period of twelve months, preceding the month in which he died, the persons entitled to receive the provident fund accumulations of the deceased shall, in addition to such accumulations be paid an amount, equal to :-

(i) the average monthly wages drawn (subject to a maximum of rupees six thousand five hundred), during the twelve months preceding the month in which he died, multiplied by twenty times or;

(ii) the amount of benefit under sub-paragraph (1).

Here, in the amendment G. S. R. 9 (E)-, there is a condition mentioned (if i am getting it right), i.e. "who was in the employment of the same establishment for a continuous period of twelve months, preceding the month in which he died", which is not applicable in this case, as the service of deceased member is only of 3 months 5 days. So, how the accumulations will be twenty times?

Plz. clarify. Thanks in advance.


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Dear Bhuvan C Arya,

I am very much appreciate you that your postings are based on the Acts. But simply reading of the Acts may lead you to misinterpretations. Hence kindly get touch with the concerned Authorities; try to understand the practices and precedences they follw and describe accordingly. I shall reproduce your quotation below.

“(22 A) On the death of an employee, who is member of the Fund or of a provident fund exempted under Section 17 of the Act, as the case may be, who was in the employment of the same establishment for a continuous period of twelve months, preceding the month in which he died, the persons entitled to receive the provident fund accumulations of the deceased shall, in addition to such accumulations be paid an amount, equal to :-

(i) the average monthly wages drawn (subject to a maximum of rupees six thousand five hundred), during the twelve months preceding the month in which he died, multiplied by twenty times or;

(ii) the amount of benefit under sub-paragraph (1).

Here the calculation criteria for an employee, who is in employment for continous period of twelve months is given. But no where it is stated that to get EDLI contribution, twelve months' continous service is required.

Abbas.P.S

Dear Sir,
I always try to deeply understand the Act's and their provision, as I am in the field of HR. So that, I could help any of the employee in a better way.
Here I am still in doubt, because if you just see that, in the Amendment Notification, EPFO has mentioned that "In the Employees’ Deposit Linked Insurance Scheme, 1976, in paragraph 22, after sub-paragraph (2), the following sub-paragraph shall be substituted, namely" and then the new Para, i.e. (22A) starts.
Is that trying to say that, if an member, employed in an establishment for a continuous period of twelve months, preceding the month in which he died, then only the accumulations will be paid twenty times. Because, in Para (22A)(ii) said that, accumulations be paid an amount, equal to :- the amount of benefit under sub-paragraph (1). Here the sub-para(1) indicates to the existing Para, i.e. 22(1)?
Plz. give your views.


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