Understanding EPF: What Are the Age Limits and Benefits for Nominees After an Employee's Death?

Dear members, My queries are:

Upper Age Limit for Contributions

(1) What is the upper age limit for pension contribution (under a/c no. 10), EDLI contribution (under a/c no. 22), and for PF accumulation (under a/c no. 1)?

Benefits for Nominee

(2) If an employee died after 10 days from joining, what benefits can their nominee claim under pension and EDLI? Kindly reply with an example.

Regards.

Regarding PF and EDLI, there is no upper age limit for contribution. However, for EPS, the age limit is 58 years.

Regards,
Abbas.P.S

Regarding PF and EDLI, there is no upper age limit for contribution. However, for EPS, the age limit is 58 years.

In the event of death after 10 days (i.e., after enrolling in EPF), a nominal amount equal to one month's contribution (both employee and employer) will be paid towards EDLI. In the case of regular death, Rs. 1,02,000 will be received. For accidental death, there is a provision for double benefits, i.e., Rs. 2,04,000.

From EPS, no pension will be paid as the member pension is not admissible due to not having rendered a service of 10 years. For family pension, a minimum of one month's contribution is required to be remitted.

Regards,
Abbas.P.S

Thank you for your valuable reply. I would like to inquire about the following:

1. As you mentioned, under EDLI, an employee can receive benefits equal to one month's contribution. How can they receive additional benefits as you indicated in lieu of EDLI? Does this involve a policy from LIC?

2. Is the double benefit provision available in LIC or in EPF?

3. To the best of my knowledge, there is an upper age limit of 58 years in EDLI and pension schemes. However, is there no age limit if a policy is obtained from LIC in place of EDLI? Am I correct in this understanding?

Thank you.

Regarding PF, EDLI, and EPS Contributions

There is no upper age limit for contributions to PF and EDLI. However, for EPS, the age limit is 58 years.

In the event of death after 10 days (i.e., after enrolling in EPF), a nominal amount equal to one month's contribution will be paid towards EDLI. In case of death in lieu of EDLI, Rs. 1,02,000 will be provided for normal death, while for accidental death, there will be a provision for double benefits, i.e., Rs. 2,04,000.

From EPS, no pension will be paid as the member pension is not admissible since the individual has not completed a service of 10 years. For a family pension, a minimum of one month's contribution is required to be remitted.

Regards, Abbas.P.S

In lieu of Employees' Deposit Linked Insurance (EDLI) such as LIC, double benefits are also available from EDLI, i.e., LIC. EDLI is an insurance scheme associated with the Employee Provident Fund (EPF). Therefore, there is no age limit for EDLI in compliance with EPF. The age cutoff of 58 years applies only to the Employees' Pension Scheme-95 (EPS-95).

Regards,
Abbas. P. S.

I was also surprised to know the above reply. Actually, the benefits are available with LIC and other insurance companies only, I suppose. Please confirm the EDLI limit, whether it is ₹1,00,000 or ₹1,02,000?

Thanks,

Ashok
HR & Payroll Executive

Dear Ashok, No doubt, the ceiling limit of EDLI is Rs. 1,00,000. My answer is regarding the provision of EDLI provided by LIC, etc.

Exemption from EDLI by EPFO

To be exempted from the EDLI run by EPFO, the employer has to provide equivalent or better benefits than EDLI. If these benefits are superior to EDLI, it will be easier to obtain an exemption. Accordingly, these agencies are offering a nominal increase, presently Rs. 1,02,000.

Regards,
Abbas.P.S

Yes, even if she worked for 10 days and died while in service, the amount of contribution calculated on 10 days' salary shall be paid to the PF/EPS account. Her husband or children below 25 years of age shall be entitled to a pension as stated in para 16(2)(a)(3)(a) of the scheme.

So far, I have experienced in one case where the nominee, or better to say his wife, has been receiving a pension per month even when her husband died while in service only after 4 days of joining the duties. PF/EPS/EDLI/ADM charges were paid, which were calculated on his 4 days' wages.

Regards,
KIRAN KALE

Dear Kiran Kale, Thank you for sharing your experience. My reply is based on the provisions 16(1) & 16(1)(a) of EPS-95, which I shall quote as under:

"16(1) Pension to the family shall be admissible from the date following the 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, or"

Based on your posting, I have clarified with our RPFC Office. They have replied that, after enrolling in EPF, pension will be paid even if the contribution is for one day.

Regards, Abbas.P.S