Understanding the EDLI Amendment: Is This Benefit Calculation Correct for Contractual Workers?

EDLI Amendment and Benefit Calculation

This is related to the EDLI amendment that was done on 24th May 2016. As per the amendment, the EDLI benefit amount has been increased from Rs. 3,60,000/- to Rs. 6,00,000/-. The mode of calculation is as follows: Rs. 15,000/- x 30 = Rs. 4,50,000/- + Rs. 1,50,000/- = Rs. 6,00,000/-.

Now, regarding the contractual laborer whose wage is Rs. 12,000/- per month and whose PF balance is almost nil: He joined on 1st June 2016 and died on 7th July 2016 due to an accident. He will receive an EDLI benefit of Rs. 12,000/- x 30 = Rs. 3,60,000/- plus an additional amount of Rs. 1,50,000/-. Thus, the total amount will be Rs. 5,10,000/-.

Is this the correct calculation as per the new amendment?

Dear Akhati,

If the PF is almost nil, 30 times of salary will only be eligible towards EDLI. The second part of 1,50,000/- is the ceiling amount of 50% of the average PF deposit during the last 12 months or total service, whichever is less.

Abbas.P.S