I shall copy my posting on the EDLI hike on a similar thread, which will be useful in this regard.
abbasiti Join Date: May 2010
Location: Palakkad, Kerala
Posts: 818
Subject - Re: Amendment to EDLI Scheme made on 8.1.2011
Dear all,
The above notification on EDLI amendment will create a revelution in the history of EDLI. Till 08.01.2011 those who die immedietely after registering with EPF, will get only a minimum amount of one month contribution. For ceiling slary, this will be Rs. Rs. 1018.55 (12%(employee)+3.67%(employer)=15.67%, 15.67%x6500 = 1018.55).
As per the new notification, EDLI amount will be arrived as follows. 1) Calculate the entitled amount based on PF deposit subject to a ceiling of Rs. 1,00,000. 2) 20 times of salary suject to a salary ceiling of Rs. 6500. As per this calculation ceiling will be Rs. 1,30,000. Out of the above (1) &(2) whichever is high will be given as EDLI. In general 20 times of salary subject to a salary ceiling of Rs. 6500 will be ensured towards EDLI. For 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 of EDLI applicable salary (this may vary subject to salary). The maximum will be Rs. 1,30,000.
Abbas.P.S