Clarification on EDLI Benefits Under the EPF Scheme
Please clarify the concept of EDLI benefits under the EPF scheme. If an employee has completed 3 years of service and their basic salary is 6500, how much benefit should be received by their nominee in the case of the employee's death?
Regards,
Mahender
From India, Delhi
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Please clarify the concept of EDLI benefits under the EPF scheme. If an employee has completed 3 years of service and their basic salary is 6500, how much benefit should be received by their nominee in the case of the employee's death?
Regards,
Mahender
From India, Delhi
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Dear Mahender, All employers to whom the Employee's Provident Fund and Miscellaneous Provisions Act, 1952 applies, have a statutory liability to contribute to the Employee's Deposit Linked Insurance Scheme, 1976, to provide the benefit of life insurance to all their employees.
Scheme Amendments Effective from 18th June, 2010
a) 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) 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 @ 0.50% of each employee's salary is payable by the employer to the Provident Fund Authorities.
Examples
a) If PF deposit is Rs.50,000, EDLI Benefit – Rs. 50,000
b) If PF deposit is Rs.1,00,000, EDLI Benefit – Rs.70,000 (50,000+20,000)
(For the first 50,000 – 50,000, Next 50,000 – 40% of 50,000 i.e., Rs.20,000)
c) Deposit Rs.2,00,000, EDLI Benefit – Rs.1,00,000 (50,000+50,000)
(For the first 50,000 – 50,000, Next 1,50,000 – 40% of 1,50,000 i.e., Rs.60,000 - Total - Rs.1,10,000, but will get Rs.1,00,000 only as it exceeds 1,00,000).
Hope this is clear to you.
Regards,
Avinash K.
From India, Mumbai
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61Scheme Amendments Effective from 18th June, 2010
a) 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) 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 @ 0.50% of each employee's salary is payable by the employer to the Provident Fund Authorities.
Examples
a) If PF deposit is Rs.50,000, EDLI Benefit – Rs. 50,000
b) If PF deposit is Rs.1,00,000, EDLI Benefit – Rs.70,000 (50,000+20,000)
(For the first 50,000 – 50,000, Next 50,000 – 40% of 50,000 i.e., Rs.20,000)
c) Deposit Rs.2,00,000, EDLI Benefit – Rs.1,00,000 (50,000+50,000)
(For the first 50,000 – 50,000, Next 1,50,000 – 40% of 1,50,000 i.e., Rs.60,000 - Total - Rs.1,10,000, but will get Rs.1,00,000 only as it exceeds 1,00,000).
Hope this is clear to you.
Regards,
Avinash K.
From India, Mumbai
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The Maximum Limit of EDLI is Rs.130000/-. I.e., 20 months of Basic Pay or the lesser pay the nominee/Legal heir will get from EDLI.
From India, Kumbakonam
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From India, Kumbakonam
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Understanding EDLI Contributions and Coverage
EDLI is a kind of insurance policy provided by EPFO. In this scheme, the employer contributes 0.5% of the employee's Basic + DA into the EDLI scheme, and 0.01% as an administration charge to maintain EDLI with EPFO.
If an employee is under the EPF Act, then he/she has to be insured by EDLI unless the employer proves that they can provide a better insurance policy than what EPFO offers.
If an employee has Basic + DA exceeding Rs. 6500 (let's say Rs. 8000), the employee will contribute 12% of Rs. 8000, but the employer has to contribute 13.61% (3.67% + 8.33% + 1.1% + 0.5% + 0.01%) only on Rs. 6500. There is no need for the employer to contribute on Rs. 8000.
From India, Delhi
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EDLI is a kind of insurance policy provided by EPFO. In this scheme, the employer contributes 0.5% of the employee's Basic + DA into the EDLI scheme, and 0.01% as an administration charge to maintain EDLI with EPFO.
If an employee is under the EPF Act, then he/she has to be insured by EDLI unless the employer proves that they can provide a better insurance policy than what EPFO offers.
If an employee has Basic + DA exceeding Rs. 6500 (let's say Rs. 8000), the employee will contribute 12% of Rs. 8000, but the employer has to contribute 13.61% (3.67% + 8.33% + 1.1% + 0.5% + 0.01%) only on Rs. 6500. There is no need for the employer to contribute on Rs. 8000.
From India, Delhi
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Dear Mahender, In addition to the post of Mr. Bhaskar, Calculation to be done on the actual basic paid and subject to the maximum of EDLI Basic i.e 6500 . Regards, Pushkar
From India, Delhi
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From India, Delhi
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To claim the EDLI benefit, the main criterion is that the death must have occurred while in service. In this instance, if the death occurred while in service and the individual had served with the same employer for 12 months, then the benefit would be ₹1,30,000.
From India, Vellore
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From India, Vellore
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Dear sir, for getting EDLI benefit, natural death is necessary? and what is the time for getting benefit?
From India, Mumbai
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From India, Mumbai
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There is no time limit. The only condition is that death must have occurred while in service Regards
From India, Vellore
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From India, Vellore
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If you are PF member, it is compulsory. It may be noted that the EDLI contributions is paid by the employer and no contribution is payable by the employee seprately. Regards Pradheep
From India, Vellore
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From India, Vellore
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Any change or increasing of amount in case of death as on EDLI ? kindly suggest
From India, Mumbai
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From India, Mumbai
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My Query:
1. The current limit for EDLI is 360,000 in PF. In the event of an employee's death, what amount will they receive as the EDLI benefit?
2. How is it calculated? Please explain with an example.
Thanks
Regards
From India
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1. The current limit for EDLI is 360,000 in PF. In the event of an employee's death, what amount will they receive as the EDLI benefit?
2. How is it calculated? Please explain with an example.
Thanks
Regards
From India
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Sir What is Minimum service period required to get EDLI Benifit in year 2000. Death accoured in Nov 2000. (ie August 2000 to November 2000) Pl reply me Thanks
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Epf EDLI Amdmt Scheme 2018.pdf
Group Insurance Scheme in Lieu Of EDLI.doc