Understanding EDLI: Can You Explain Exemption Provisions and How They Work?

Understanding EDLI and Exemption Provisions

Can anyone help me to understand the Employees' Deposit Linked Insurance (EDLI) scheme, and is there any provision for exemption from EDLI?

Regards

EDLI is called Employee's Depository Linked Insurance. It is essentially insurance for employees. If your organization already provides insurance benefits, then EDLI can be exempted. Otherwise, it is mandatory.

Thank you.

Thank you, JP. However, the scheme states in US 17(2) that any company can take the exemption if the company provides a suitable scheme for the employees beyond EDLI. Our company has already taken the exemption, but I would like to know if our company is still paying EDLI or not?

Understanding EDLI and Its Payment Process

EDLI is exemplified from PFO, which means that EDLI is to be paid at LIC for account no. 21. Additionally, account no. 22 requires a payment of 0.005% at PF in the PF Challan.

You have to take an LIC policy in lieu of EDLI to claim exemption from paying contributions to PF.

Understanding EDLI and Exemption Options

EDLI can be paid either with EPF or through any other scheme that matches the benefits provided by EPF. If EDLI is not maintained with EPF, companies can subscribe to LIC by obtaining an exemption certificate from the relevant authority.

Please find attached the extract of the Bare Act, EDLI, which will help you understand the legal provisions.

Regards, Kumar S.

How to change EDLI LIC to EDLI PF

In order to change from EDLI LIC to EDLI PF, you may need to follow these steps:

1. Contact your HR department or the relevant authority to inquire about the process for switching from EDLI LIC to EDLI PF.

2. Fill out any required forms or paperwork to make the change official.

3. Ensure that all necessary documentation is submitted and processed accordingly.

4. Keep track of the status of your request to ensure a smooth transition from EDLI LIC to EDLI PF.

By following these steps and staying informed throughout the process, you should be able to successfully change from EDLI LIC to EDLI PF.