What Happens to EDLI Contributions After an Employee Turns 58? Seeking Clarity

Employee's PF Contribution After 58 Years

An employee completes 58 years in the month of Jan '14. While depositing his PF in the month of Feb '14 for Jan '14, the entire 12% of the employer's share goes into PF as the contribution towards the pension fund becomes ZERO.

But what about the EDLI (0.5% of PF salary) and EDLI Admin. charges (0.01% of PF salary)? Will the EDLI continue or, like the pension, will it also become zero after the attainment of 58 years? In other words, does the total contribution towards PF become 25.1% (12% employee's PF share, 12% employer's PF share, and 1.1% PF admin. charges), or does it remain at 25.61% (12% employee's PF share, 12% employer's PF share, 1.1% PF admin. charges, 0.5% EDLI, and 0.01% EDLI admin. charges)?

Please revert with your inputs.

Whenever the PF amount is deducted from a salary, it will deduct 12% of Basic + 1.1% of Basic + EDL 0.5% on Rs 6500. If your basic is more than Rs. 6500, then Rs 6500 will be deducted, or if it is less than Rs 6500, then the actual amount will be considered. Additionally, there will be a +0.01% Inspection charge. If your basic is more than Rs. 6500, then Rs 6500 will be deducted, or if it is less than Rs 6500, then the actual amount will be considered. Finally, there will be a +12% of Basic - Employer Contribution deducted from the total, which will be subtracted from the Employee's Salary. This is why it is known as CTC.

In this case, the total mentioned amount will be deducted and deposited into the PF Account by the last day of his service.

Please let me know if you need any further information in this regard.

Regards,
Pranab Chakraborty

Thank you for your valuable inputs! So, you mean to say that the EDLI and EDLI inspection charges will continue to be deposited by the employer even after an employee attains the age of 58 years. Are you aware of the section/subsection under the 'Employees Provident Fund and Miscellaneous Provisions Act, 1952' which supports this statement? Please revert as I have to justify with a proper backup.

Regards

Is EDLI applicable after completing 58 years of age? Regards, Mohan Kumar

When an employee reaches the age of 58 years, they become exempt from the Employee Pension Scheme (EPS) and Employee's Deposit Linked Insurance (EDLI). Consequently, the employer is not required to submit their contribution towards EPS Account 10, EDLI Accounts 21 and 22. Additionally, the contribution to the Pension Account also ceases, as it is merged with the Employer's Contribution in Account 1.

Contribution Rates After Age 58

Following this, the contribution rates in Account 1EE, Account 1ER, and Account 10ER are as follows: EE - 12%, ER - 12%, and 1.10% respectively.

Varsha, please note that Accounts 21 and 22 do not pertain to EDLI contributions or EDLI inspection charges; rather, they relate to EDLI contributions and EDLI administrative charges.

I hope this clarifies any doubts. Cheers.

Can you please tell me which paragraph of the EDLI scheme states that an employee is exempted from it after 58 years?

Regards,
Varghese Mathew

[QUOTE=varghesemathew;2128489] Mr. Arya, can you please tell me which paragraph of the EDLI scheme states that an employee is exempted from it after 58 years? Varghese Mathew

Yes, I would also like to know as I need to support my actions with a relevant quote from the act.

Regards, Varsha

I apologize for the error in my previous comment.

Clarification on EDLI Contributions

EDLI Contributions in A/c 21 & 22 cannot be ceased upon the superannuation of a member. EDLI contributions must continue even if a member has surpassed 58 years of age and pension contributions are no longer required. These contributions should be made as long as the member remains in service and PF payments continue.

Regards

I think the contribution to the pension A/c 10 at 8.33% will stop when employees complete 58 years of age. However, the EDLI contribution A/c 21 at 0.50% and the EDLI inspection charges A/c 22 at 0.01% will continue.

The contribution of pension A/c 10 -8.33% will stop when employees complete 58 years of age. However, the EDLI contribution A/c 21 at -0.50% and EDLI inspection charges A/c-22 at 0.01% will continue. Both the employee and employer contributions will be directed to EPF A/c.