Understanding the New EDLI Scheme Changes: How Does the Latest Gazette Notification Affect You?

New Gazette Notification on EDLI Scheme

In the new Gazette notification No. GSR 299(E) dated 28.04.2021, the Maximum Assurance Benefit payable under paragraph 22(3) of the EDLI scheme has been enhanced to Rs. 7 Lakh from the earlier Rs. 6 Lakh. Under paragraph 22(3) of the scheme, the salary multiple shall be 35.

The Minimum Assurance Benefits payable under this scheme are fixed under the above-mentioned paragraph at Rs. 2.50 Lakh with effect from 15.02.2020. The Rs. 7 Lakh includes Rs. 5,25,000/- for the EDLI Scheme and Rs. 1,75,000/- for the Bonus, which is 50% of the Average EPF Balance.

Maximum Assurance Benefit Under the EDLI Scheme

The Maximum Assurance Benefit payable under paragraph 22(3) of the EDLI scheme has been enhanced to Rs. 7 lakh from the earlier Rs. 6 lakh. (Under para 22(3) of the scheme, the salary multiple shall be 35).

Minimum Assurance Benefits

The minimum assurance benefits payable under this scheme are fixed under the above-mentioned paragraph at Rs. 2.50 lakh effective from 15.02.2020.

My father passed away on 26/05/2021. He worked in private security service from 2011 to the present year, 2021. In the last 12 months, his basic salary was 3700, and his total provident fund (PF) contribution is 45000. I would like guidance on calculating the benefits for the Employee's Deposit Linked Insurance (EDLI) and pension.

Please advise accordingly.

Thank you.