Dear Member,
You are all requested to describe to me the way of calculating EDLI for an employee concerning their wages and duration of service. What is the significance of the limit of Rs 60,000 in EDLI?
Thanks and Regards,
Vikas Kumar
Note: Does 51F only come into effect in the event of death? Is that correct?
From India, New Delhi
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16You are all requested to describe to me the way of calculating EDLI for an employee concerning their wages and duration of service. What is the significance of the limit of Rs 60,000 in EDLI?
Thanks and Regards,
Vikas Kumar
Note: Does 51F only come into effect in the event of death? Is that correct?
From India, New Delhi
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Dear,
EDLI stands for Employees' Deposit Linked Insurance Scheme. This is an insurance cover provided by the PF in the event of an employee's death. 0.01% of the total wages are contributed towards this scheme every month.
In the event of an employee's death, the nominee will receive benefits ranging from $35,000 to $60,000 based on their basic salary.
Thank you,
J. S. Malik
From India, Delhi
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EDLI stands for Employees' Deposit Linked Insurance Scheme. This is an insurance cover provided by the PF in the event of an employee's death. 0.01% of the total wages are contributed towards this scheme every month.
In the event of an employee's death, the nominee will receive benefits ranging from $35,000 to $60,000 based on their basic salary.
Thank you,
J. S. Malik
From India, Delhi
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Understanding EDLI: Employees' Deposit Linked Insurance Scheme
EDLI is the abbreviation for Employees' Deposit Linked Insurance Scheme. Here, "deposit" refers to the average deposit in the EPF. When an employee dies while in service, the family will receive compensation based on his/her deposit. To claim, the employer has to pay 0.5% as its premium.
Determination of Deposit
The average deposit of the last twelve months, as well as the total service, will be calculated, and whichever is less will be taken for the calculation.
Determination of Compensation
- Up to Rs. 50,000/-, the actual amount will be received.
- Beyond the first Rs. 50,000/-, 40% of the rest will be received, subject to a ceiling of Rs. 100,000/-.
Examples
- Example a) Deposit Rs. 100,000:
For the first 50,000 - 50,000
Next 50,000 - 20,000
Total - Rs. 70,000 (will receive the full amount as it does not exceed 100,000).
- Example b) Deposit Rs. 200,000:
For the first 50,000 - 50,000
Next 150,000 - 60,000
Total - Rs. 110,000 (will receive Rs. 100,000 only as it exceeds 100,000).
- Example c) Deposit Rs. 300,000:
For the first 50,000 - 50,000
Next 250,000 - 100,000
Total - Rs. 150,000 (will receive Rs. 100,000 only as it exceeds 100,000).
However, there are better insurance schemes with the same premium, even without considering the deposits. With these types of better benefits, some organizations are exempted from EDLI. Instead, they provide alternatives to EDLI. Some schemes specify more than Rs. 100,000/- for natural death and double benefits for accidental death.
Regards,
Abbas. P. S, ITI Ltd, Palakkad 678 623.
Ph. [Phone Number Removed For Privacy Reasons]
From India, Bangalore
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EDLI is the abbreviation for Employees' Deposit Linked Insurance Scheme. Here, "deposit" refers to the average deposit in the EPF. When an employee dies while in service, the family will receive compensation based on his/her deposit. To claim, the employer has to pay 0.5% as its premium.
Determination of Deposit
The average deposit of the last twelve months, as well as the total service, will be calculated, and whichever is less will be taken for the calculation.
Determination of Compensation
- Up to Rs. 50,000/-, the actual amount will be received.
- Beyond the first Rs. 50,000/-, 40% of the rest will be received, subject to a ceiling of Rs. 100,000/-.
Examples
- Example a) Deposit Rs. 100,000:
For the first 50,000 - 50,000
Next 50,000 - 20,000
Total - Rs. 70,000 (will receive the full amount as it does not exceed 100,000).
- Example b) Deposit Rs. 200,000:
For the first 50,000 - 50,000
Next 150,000 - 60,000
Total - Rs. 110,000 (will receive Rs. 100,000 only as it exceeds 100,000).
- Example c) Deposit Rs. 300,000:
For the first 50,000 - 50,000
Next 250,000 - 100,000
Total - Rs. 150,000 (will receive Rs. 100,000 only as it exceeds 100,000).
However, there are better insurance schemes with the same premium, even without considering the deposits. With these types of better benefits, some organizations are exempted from EDLI. Instead, they provide alternatives to EDLI. Some schemes specify more than Rs. 100,000/- for natural death and double benefits for accidental death.
Regards,
Abbas. P. S, ITI Ltd, Palakkad 678 623.
Ph. [Phone Number Removed For Privacy Reasons]
From India, Bangalore
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