EDLI Amendment: EDLI Minimum Assurance at 2 Lakh Fifty Thousand. Notification attached.
The EPF&MP Act, 1952 provided for a provident fund and a family pension scheme for employees from 1971 onwards. However it was felt that problems arising out of early death of the employee were left unaddressed. In view of this, the Act was amended to incorporate an insurance scheme, called the Employees' Deposit Linked Insurance Scheme (EDLIS) in 1976.
The objective of the scheme was to put in place a mechanism to provide employees' families with income security after the death of the member while in service. It is funded through contributions by the employer with no contribution by the employee himself. A comprehensive administrative framework has been set-up to ensure smooth functioning of the scheme.
The contribution @ 0.50% of each employee's salary is payable by the Employer to the Provident Fund Authorities.
On the death of an employee while in service, who is a member of the Provident Fund, the selected nominee will get the existent accumulations in the PF account of the employee as well as an additional amount.
Govt. has increased the minimum assurance amount to 2.5 lakhs. The maximum benefit, a deceased member's nominee shall get is be Rs. 6 lakhs.
From India, Thana
If you are knowledgeable about any fact, resource or experience related to this topic - please add your views using the reply box below. For articles and copyrighted material please only cite the original source link. Each contribution will make this page a resource useful for everyone.