Understanding the 2014 EPF, Pension, and EDLIS Limit Changes – What Does It Mean for You?

EPF, Pension Scheme, and EDLIS Limit Enhancement

Friends, the EPF, Pension Scheme, and EDLIS limit were enhanced from 1st September 2014, as per the recent notification attached herewith.

Regards,

Yes, thank you for the update. The wage ceiling has been enhanced to 15,000, the minimum pension has been increased to 1,000, and the EDLI benefit has been raised to 20%. Please let me know if you need any further information or assistance.

Regards,

There is no law for the breakup of the salary structure under any Act except the HRA Act in a few states, as per my knowledge. During the time of the EPF limit of Rs 6500/-, many employers showed a breakup of the salary and paid contributions on only the Basic and/or DA part of the salary. This practice was questioned by the EPF authority, and later, a few court cases ruled in favor of EPF and vice versa. Therefore, the breakup of the salary should be done while keeping in mind the interest of the contributions towards EPF, EPS, and EDLIS to the extent of mandatory coverage. More light will be shed on this issue by other members of the fraternity.

As per the EPF Gazette, there is a 20% additional relief on the amount of assurance benefits admissible under EDLI. Can anyone confirm this meaning?

The EDLI benefit depends upon the PF Salary. If the PF salary is Rs 6,500 for an average of 12 months, the deceased member was getting Rs 130,000 as EDLI benefit (6,500 * 20). The same is increased by 20%.

If the average salary is Rs 15,000 * 20 = Rs 300,000 + 20% = Rs 360,000 maximum will be the EDLI payment.

If the establishment has an exemption from EDLI, it may have to pay a minimum of Rs 3.60 L under the EDLI scheme.

Thanks,
Vidyadhar Bhat