Understanding EPF: What Are the Benefits of EDLI and Is VPF Taxable?

Hi friends,

I have the following doubts regarding PF:

1. What is EDLI (Employee Deposit Linked Insurance)? We pay for it along with PF. What benefits will it provide? After how many months of PF contribution will this benefit be applicable to the employee? When it becomes applicable, is there any ceiling or percentage?

2. Will VPF (Voluntary PF contribution, deducted from the employee's salary upon request) be taxable?

Please clarify my doubts.

Regards,
Sri
9618777818

I have a doubt regarding the EPF Loan. I have been working in a software firm for the last 3 1/2 years. Now, I want to withdraw some money from EPF in the form of a loan. Can anyone please tell me if I am eligible to take the loan?

Regards,
Kalyan Gupta

Dear Srihari,

1) EDLI, as the name denotes, is an insurance scheme. The employer alone contributes to this scheme at the rate of 0.51% of the basic salary (0.50% as insurance premium and 0.01% as EDLI admin charges). Only death benefits are covered under this scheme. Please review the attached act.

2) You can contribute up to 100% of your basic salary as VPF. A 9.5% interest rate will be applied to it. This contribution will be treated as savings, and the ceiling of savings as per the IT act is also applicable here.

Dear Kalyan Gupta,

A minimum of 5 years of service is required for the withdrawal of money from EPF accumulation. Please refer to the attached file for clarifications.

S. Sethupathy, Excellent HR Services, Erode.