Seeking Help: How to Calculate EDLI Compensation After My Dad's Sudden Passing?

My Dad joined a private organization on 16th April of this year, and he passed away on 22nd April (after five days) due to natural causes. He didn't have any contributions towards EPF - EDLI as he didn't receive his first month's salary. His CTC was 9795, with a basic pay of 2270.

Compensation Eligibility Under EDLI

How much compensation is he eligible for under EDLI? Please help as soon as possible. Thanks in advance.

Regards

One of the senior admins here mentioned that even one day's attendance is enough to claim EDLI. I spoke to the employer regarding this, and they confirmed he is eligible.

If your employer is ready to support you, then please fill out the requisite forms and submit them to the PF authorities.

It is not correct to say that even one day's attendance is enough for EDLI. However, some insurance companies provide this facility of even one day's attendance. If the organization has taken a policy with any insurance company, based on the terms, the family can get the insurance amount. But under the Act, the claim is not tenable. However, my knowledge on this subject is about 6 years old, and I have not bothered to follow amendments on this matter. If there had been any, I am sure I will stand corrected.

If the organization is prepared to give, then why check on the legal position?

Regards,
Sivasankaran

Eligibility for PF and EDLI Benefits

As per the PF Act, all employees are covered from day one. If your father was on the company's payroll and became a member under the PF Act, the dependents are eligible to claim Pension and EDLI coverage of an amount of Rs. 130,000. Please check with the HR manager for the declaration form 2 to identify the nominees and request him to process claims with the PF office.

You can claim a portion of the salary for the days worked and ensure that PF is deducted in the final settlement. Dependents are also eligible for Gratuity.

As per the legal provisions, there is no eligibility criterion mentioned. If a policy has been taken by the concerned organization, then we would not know the eligible amount unless we examine the policy terms.

Regards,
Sivasankaran

Thank you very much. I found a similar reply in another thread. Thanks again. I would like to repost what was useful. Thanks to Mr. Abbas.

Subject - Re: Amendment to EDLI Scheme made on 8.1.2011

Dear all, the above notification on the EDLI amendment will create a revolution in the history of EDLI. Till 08.01.2011, those who die immediately after registering with EPF will get only a minimum amount of one month's contribution. For ceiling salary, this will be Rs. 1018.55 (12% (employee) + 3.67% (employer) = 15.67%, 15.67% x 6500 = 1018.55).

As per the new notification, the EDLI amount will be calculated as follows:

1) Calculate the entitled amount based on PF deposit subject to a ceiling of Rs. 1,00,000.
2) 20 times the salary subject to a salary ceiling of Rs. 6500. According to this calculation, the ceiling will be Rs. 1,30,000. Out of the above (1) & (2), whichever is higher will be given as EDLI. In general, 20 times the salary subject to a salary ceiling of Rs. 6500 will be ensured towards EDLI. For the 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, effective from 08.01.2011, there will be a minimum of 20 times the EDLI applicable salary (this may vary subject to salary). The maximum will be Rs. 1,30,000.

Abbas.P.S

Regards.

Your family members are eligible for claiming PF and EDLI. Once it is checked and confirmed that your father had signed the declaration form clearly, giving nominee details, the nominee can claim for payment of PF and EDLI. Please write a letter to settle the due amount, informing that you are the legal heir. It is the responsibility of the employer to cover and pay the dues. The new EDLI policy coverage is in force, and if the employer has purchased a policy from an insurance company, it should follow the act and pay. This EDLI act will come into force along with PF.

Hi All, My Dad joined a private organization on 16th April of this year, and he passed away on 22nd April (after five days) due to natural causes. He didn't have any contributions towards EPF - EDLI as he didn't receive his first month's salary. His CTC was 9795, with a basic pay of 2270. How much compensation is he eligible for under EDLI? Please help as soon as possible. Thanks in advance.

Eligibility for EDLI Compensation

After getting registered with EPF, even if there is one-day attendance, EDLI and Family pension are eligible. Whether salary is received or not is not a matter. Out of a CTC of 9795, if PF is paid on 2270, then EDLI will be 2270 x 20 = Rs. 45,400. The formula (in this case) is salary x 20.

Regards, Abbas.P.S

Understanding EDLI in Government Jobs

What is EDLI? Does it apply to government jobs? My father was in a municipal job and received PF & gratuity after his death in an accident. He still had nine years of service left, but there was nothing like EDLI. Please comment.

Regards

The employer has to submit your father's name in Form-5 with the date of joining (16/4) and also submit Form-10 stating that he died on 26/4. He has to submit Form-2 along with Form-5. Then the nominee, as per Form-2 (declaration form), has to submit the EDLI claim Form (Form-5IF) along with the EPF claim Form-20 to the PF office with the death certificate and relevant particulars. The nominee will then receive the minimum EDLI amount as per PF rules (may be Rs. 30,000). Please act accordingly.

Regards,
D. Gurumurthy LL. HR & IR Consultant Hyderabad.

Government Employees and GPF Savings

Some government employees save amounts under the General Provident Fund (GPF), either in the post office or some banks, to gain benefits against income tax saving plans. Hence, the EDLI Scheme is not applicable in your father's case.

Private Sector Employees and the EDLI Scheme

In the private sector, all employees working in factories or establishments are covered under the Employees' Provident Fund and Miscellaneous Provisions Act. Contributions from both the employer and employee are paid to the EPFO INDIA. Under this, the EDLI scheme is applicable to the members of EPF. It is paid to the dependents of the deceased member if the member dies while in service. This will be paid to the members (Legal Heir) of the deceased employee as a one-time payment.

Regards,
Mrinal Kumar

Working period: Dec '12 to Jul '13. Basic: 2593 per month.

When we applied for EDLI, the PF office rejected the claim, stating that the deceased person had worked for less than a year and therefore could not process it. However, your response seems to contradict the information provided by the PF office.

Please advise.

Dear Friend,

First and foremost, my deepest sympathy for this sad moment in your life.

On a technical note, I believe that in just 6 days, the employer did not complete any statutory formalities for your father in relation to his employment obligations. Since your father is no longer alive, and you are inquiring on his behalf, I do not think you are eligible to receive any benefits under the EDLI scheme.

However, on a humane note, the employer may be able to provide some assistance.

Regards