Understanding EDLI: How Much Death Benefit Is Given for an Employee's Accidental Death?

Suppose an employee has a PF balance of the last 12 months of 25,000, and he dies in an accident. How much death benefit will he receive? Please clarify with calculations. Additionally, if he has 70,000 in his PF account, what will be the benefits?

Thank you.

Dear friends,

Regarding EDLI, the salary ceiling is Rs. 15,000. Currently, the entitled amount is 24 times. Therefore, the maximum compensation towards EDLI is Rs. 15,000 x 24 = Rs. 3,60,000.

Abbas.P.S

EDLI will be the last 12 months' average PF wage (the wage on which PF is being deducted, subject to a ceiling of 15000) multiplied by 24.

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Grateful if anybody could provide the detailed calculation of EDLI benefit based on the latest amendment with examples, particularly how benefits on average balances are calculated.

Please see the amendment circular dated 15/02/2018 of EPFO on EDLI. This is self-explanatory and should answer all your queries.

EDLI New Rule:

The average monthly wages drawn (subject to a maximum of 15,000.00) during the 12 months preceding the month in which the employee died, multiplied by 30 times plus 50% of the average balance in the account of the deceased in the Fund, whichever is less, subject to a ceiling of 1,50,000/-: Provided that the assurance benefit shall not be less than 2.5 lakh rupees. Provided further that the assurance benefit shall not exceed 6 lakh rupees.

Example:

Employee DOJ: 01/01/2018, DOD: 20/02/2018, PF salary: 10,000/-

EPF Deduction: 10,000 / 26 (working days) x 18 Present Days = 6,923.00

PF contribution @12%: 831.00 + Employer share towards EPF @3.67% = 254.00 + EPS @8.33% = 577.00, Total EPF Balance = 1,085 + Int.

EDLI calculation: 10,000 x 30 = 3 Lacs + 50% of EPF balance i.e. 543.00.

EDLI Benefits would be 3,00,543.00 + Pension to widow and child up to 2 children of age up to 25 years + EPF balance.

The said provision shall be in force for the first 2 years from 15/02/2018.

If any member has not completed 12 months and died before completing, suppose for 9 months he did the service. Can you please share details on the calculation as per the current amendment.

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Please let me know if you need further assistance.

Bonus calculation: 50% of the balance PF amount, with a maximum amount of 175,000.

In cases where the contribution is less than 12 months: average PF balance up to 50,000. For contributions exceeding 50,000: average PF balance plus 40% of the excess over 50,000, with a maximum limit also applicable.