How Does the New EDLI Limit of Rs. 1,30,000 Affect Your Benefits?

Central Board of Trustees Meeting Update

The 190th meeting of the Central Board of Trustees (EPF), chaired by Union Minister for Labour & Employment, Shri Mallikarjuna Kharge, decided on 15.9.2010 to enhance the ceiling limit of EDLI (Employees' Deposit Linked Insurance) to Rs. 1,30,000, equivalent to 20 times the salary ceiling limit of Rs. 6,500. This enhancement was previously increased from Rs. 60,000 to Rs. 100,000 on June 18, 2010, vide GSR 523(E).

Regards,
Abbas P.S., ITI Ltd, PALAKKAD - 678 623, Ph. [Phone Number Removed For Privacy Reasons]

The implementation of the ceiling hike of Rs. 1,30,000 is effective from 08.01.2011.

Regards,
Abbas P.S

Thank you for sharing. What will be the case when the period of employment is only for 4 months at the time of the employee's death? Is the dependent eligible for the same as mentioned in the notification?

Regards,
Vikram

Subject - Re: Amendment to EDLI Scheme made on 8.1.2011

Dear all, the above notification on the EDLI amendment will create a revolution in the history of EDLI. Till 08.01.2011, those who die immediately after registering with EPF will get only a minimum amount of one month's contribution. For the ceiling salary, this will be Rs. 1018.55 (12% (employee) + 3.67% (employer) = 15.67%, 15.67% x 6500 = 1018.55).

As per the new notification, the EDLI amount will be calculated as follows:

1) Calculate the entitled amount based on PF deposit subject to a ceiling of Rs. 1,00,000.
2) 20 times the salary subject to a salary ceiling of Rs. 6500. According to this calculation, the ceiling will be Rs. 1,30,000. Out of the above (1) & (2), whichever is higher will be given as EDLI. In general, 20 times the salary subject to a salary ceiling of Rs. 6500 will be ensured towards EDLI. For the ceiling salary, this will be Rs. 1,30,000. 130000/1018.55 = 127.63, i.e., the minimum is enhanced by 127.63 times!

Therefore, w.e.f. 08.01.2011, there will be a minimum of 20 times the EDLI applicable salary (this may vary subject to salary). The maximum will be Rs. 1,30,000.

Regards, Abbas.P.S

Hi Abbas, this is Murali. Except for the basic things about EPF, I don't know anything else. Please guide me on how to calculate all the aspects.

Regards,
Murali A Prasath