Understanding EDLI LIC vs. EDLI PF: What Are the Benefits and Drawbacks?

Dear All,

1. What is the benefit of adopting the EDLI LIC scheme?
2. What are all the disadvantages of the EDLI PF scheme?

Can anyone help me with this matter?

Regards,
Prasanna

Dear Venkat,

My above posting was on 14.08.2010. On 08.01.2011, EPFO amended the scheme. As per the new provision, in addition to the above calculation, another calculation, viz. 20 times of salary subject to a salary ceiling of 6500 (Amount ceiling will be 6500 x 20 = 130000), was also introduced. Whichever is higher of these two will be taken into account. From 01.09.2014 onwards, 20 times is enhanced to 24 times, and the ceiling salary is enhanced to 15000. Hence, the amount is 24 x 15000 = 360000.

Abbas.P.S

Please find the latest amendment from EPFO related to EDLI.

- Venkat

Dear Mr. Venkat,

You may have missed the information that the number has been increased from 20 to 24. The second paragraph of the notification you provided can be quoted as follows:

"2. Additionally, the benefits under paragraph 22 of this scheme shall be increased by 20% in addition to the benefits admissible under sub-paragraphs (1), (2), & (3) of paragraph 22."

Calculating 20% of 20 results in an increase of 4, making it 24 times.

Abbas

Friends,

The latest official Gazette notification is effective from 15-02-2018 regarding the enhancement in the EDLI benefits. Suppose an employee passed away on 02-02-2018, are the nominee/claimants eligible for the benefits under the revised amendment?

Thank you,
Sreedhara Murthy B N