What Are the Benefits of EDLI in PF and Who Really Gains from It?

Understanding the Benefits of EDLI in PF

Please tell me what the benefits of EDLI in PF are. How and who benefit from this scheme? Who provides the benefit—this PF department or any insurance company?

Please provide me with details.

Regards,
Lokesh

Understanding the Benefits of EDLI in PF

EDLI stands for Employees' Deposit Linked Insurance. The maximum amount payable is 20 times the PF qualifying salary, i.e., Rs 130,000. This amount is paid to the dependents of a PF subscriber upon his death. It is paid by the PF organization. LIC also has schemes that are at par with or better than what is being followed by the EPFO. Those who have opted for LIC's scheme are exempted from EDLI.

Regards,
Madhu.T.K

Hi Dipti,

The qualifying salary under PF is Rs. 6500. The EDLI is coverable up to 6500 only. The EDLI premium (including admin charges) is payable by the employer, which is 0.51% of the basic salary.

Regards,
Ram.