Insurance Benefit Calculation
a) The insurance benefit is the average balance of the Provident Fund during the last 12 months, provided that such balance does not exceed Rs.1,00,000/- INR.
b) The insurance cover would be equal to Rs.50,000 plus 40% of the amount in excess of Rs.50,000, subject to a maximum of Rs.1,00,000.
c) The contribution at 0.50% of each employee's salary is payable by the employer to the Provident Fund Authorities.
Example Calculations
a) If the PF deposit is Rs.50,000, the EDLI Benefit is Rs.50,000.
b) If the PF deposit is Rs.1,00,000, the EDLI Benefit is Rs.70,000 (50,000 + 20,000).
- For the first Rs.50,000: Rs.50,000
- For the next Rs.50,000: 40% of Rs.50,000, i.e., Rs.20,000
c) If the deposit is Rs.2,00,000, the EDLI Benefit is Rs.1,00,000 (50,000 + 50,000).
- For the first Rs.50,000: Rs.50,000
- For the next Rs.1,50,000: 40% of Rs.1,50,000, i.e., Rs.60,000
- Total: Rs.1,10,000 (will get Rs.1,00,000 only as it exceeds Rs.1,00,000).
Clarification Needed
Now, my concern is if the limit is Rs.3.6 lakh and the wage ceiling is Rs.15,000, then as per the above example, if I am wrong, please clarify:
a) The insurance benefit is the average balance of the PF fund during the last 12 months (provided it does not exceed Rs.3,60,000/- INR).
b) The insurance cover would be equal to Rs.50,000 plus 40% of the amount in excess of Rs.50,000, subject to Rs.3,60,000.
If the PF balance is suppose Rs.30,000, then what will be the benefits?
a) The insurance benefit is the average balance of the Provident Fund during the last 12 months, provided that such balance does not exceed Rs.1,00,000/- INR.
b) The insurance cover would be equal to Rs.50,000 plus 40% of the amount in excess of Rs.50,000, subject to a maximum of Rs.1,00,000.
c) The contribution at 0.50% of each employee's salary is payable by the employer to the Provident Fund Authorities.
Example Calculations
a) If the PF deposit is Rs.50,000, the EDLI Benefit is Rs.50,000.
b) If the PF deposit is Rs.1,00,000, the EDLI Benefit is Rs.70,000 (50,000 + 20,000).
- For the first Rs.50,000: Rs.50,000
- For the next Rs.50,000: 40% of Rs.50,000, i.e., Rs.20,000
c) If the deposit is Rs.2,00,000, the EDLI Benefit is Rs.1,00,000 (50,000 + 50,000).
- For the first Rs.50,000: Rs.50,000
- For the next Rs.1,50,000: 40% of Rs.1,50,000, i.e., Rs.60,000
- Total: Rs.1,10,000 (will get Rs.1,00,000 only as it exceeds Rs.1,00,000).
Clarification Needed
Now, my concern is if the limit is Rs.3.6 lakh and the wage ceiling is Rs.15,000, then as per the above example, if I am wrong, please clarify:
a) The insurance benefit is the average balance of the PF fund during the last 12 months (provided it does not exceed Rs.3,60,000/- INR).
b) The insurance cover would be equal to Rs.50,000 plus 40% of the amount in excess of Rs.50,000, subject to Rs.3,60,000.
If the PF balance is suppose Rs.30,000, then what will be the benefits?