The PF accumulations will start with low investments at the beginning and end with high amounts, provided no non-refundable loan is taken. If a loan is applied, the figures will again change.
Suppose a member has 5 lakh rupees in his account at the end of service. Let his average accumulation for the total service be Rs. 2 lakhs and Rs. 4 lakhs for the last 12 months. Out of the above two, whichever is less, i.e., Rs. 2 lakhs, will be taken for calculation.
Out of the Rs. 2,00,000, for the first 50,000; EDLI is actual, i.e., 50,000 - (1).
For the balance 1,50,00, EDLI will be 40%, i.e., 60,000 - (2).
(1) + (2) = 1,10,000.
But the ceiling for the above calculation is Rs. 1,00,000 - (A).
Let his salary be:
i) Rs. 4000
ii) Rs. 5000
iii) Rs. 6500
iv) Rs. 8000
20 times of the salary will be - (B)
i) 80,000
ii) 1,00,000
iii) 1,30,000
iv) 1,60,000
As there is a ceiling limit of 1,30,000, serial (iv) will also be treated as 1,30,000.
Hence, whichever is higher of the above (A) & (B) will be taken as EDLI benefit as under.
i) 1,00,000
ii) 1,00,000
iii) 1,30,000
iv) 1,30,000
Abbas.P.S