Dear Sir/Madam, Kindly guide me about the current EDLI amendment of 24th May 2016, where the EDLI coverage has been enhanced to 6 lakhs. The amendment states: "Basic Salary X 30 Times + 50% of the Average PF balance during the preceding 12 months or during his membership, whichever is less, subject to a ceiling of Rs.1.5 Lakhs." The first part is clear; we can calculate the basic salary * 30 times. The second part needs some clarification on the calculation aspect. I would be grateful if anyone could assist me.
Thanks,
Smitha
From India, Kochi
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Thanks,
Smitha
From India, Kochi
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Dear Smitha,
For the calculation of the 2nd part, members' average contribution for the preceding 12 months as well as total service will be calculated, and whichever is less out of the two will be taken into account for EDLI subject to a ceiling of Rs. 1,50,000. This will be added to the 1st part, which is subject to a ceiling of Rs. 4,50,000. Accordingly, the ceiling for the total amount will be Rs. 6,00,000.
Abbas. P. S. ITI Limited, PALAKKAD - 678 623.
From India, Bangalore
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530For the calculation of the 2nd part, members' average contribution for the preceding 12 months as well as total service will be calculated, and whichever is less out of the two will be taken into account for EDLI subject to a ceiling of Rs. 1,50,000. This will be added to the 1st part, which is subject to a ceiling of Rs. 4,50,000. Accordingly, the ceiling for the total amount will be Rs. 6,00,000.
Abbas. P. S. ITI Limited, PALAKKAD - 678 623.
From India, Bangalore
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Dear Smitha,
For the second half of the average contribution for the preceding 12 months, as well as total service, will be calculated, and whichever is less out of the two will be taken into account. This amount will be added (subject to a ceiling of Rs. 150,000) to the first part, subject to a total ceiling of Rs. 600,000.
Abbas P.S. ITI Ltd., PALAKKAD
From India, Bangalore
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For the second half of the average contribution for the preceding 12 months, as well as total service, will be calculated, and whichever is less out of the two will be taken into account. This amount will be added (subject to a ceiling of Rs. 150,000) to the first part, subject to a total ceiling of Rs. 600,000.
Abbas P.S. ITI Ltd., PALAKKAD
From India, Bangalore
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Thank you, Abbas.
We have taken an exemption from EDLI (EDLI Insurance coverage plus accident coverage). In that case, how will we calculate the average 50% balance? For example, in the case of new joiners, we are unaware of their PF balance. We plan to give a graded structure based on their PF Wage but are doubtful whether we can proceed with that structure.
Kindly guide.
Thanks,
Smitha
From India, Kochi
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We have taken an exemption from EDLI (EDLI Insurance coverage plus accident coverage). In that case, how will we calculate the average 50% balance? For example, in the case of new joiners, we are unaware of their PF balance. We plan to give a graded structure based on their PF Wage but are doubtful whether we can proceed with that structure.
Kindly guide.
Thanks,
Smitha
From India, Kochi
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In case you have taken an exemption from EDLI, there should not be any concern regarding EDLI payment (limit). The insurance company pays the amount. There are some formulas (based on the last basic salary, total service period, NCP days, etc.). Half-yearly or annual returns are submitted to the insurance company regarding the members' data.
In case of the death of any member, you have to inform the insurance company. There are some claim forms on which member details are provided, and accordingly, the insurance company processes the claim.
This is based on my experience on the matter. I used to deal with these things long back. For more details, you have to coordinate with the insurance company. If there is any update, please share the same for our knowledge as well.
Regards,
[username]
From India, Delhi
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In case of the death of any member, you have to inform the insurance company. There are some claim forms on which member details are provided, and accordingly, the insurance company processes the claim.
This is based on my experience on the matter. I used to deal with these things long back. For more details, you have to coordinate with the insurance company. If there is any update, please share the same for our knowledge as well.
Regards,
[username]
From India, Delhi
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In the case of Insurance in lieu of EDLI, compensation may be Rs 602000/- for normal death and Rs. 1204000/- for accidental death. Abbas.P.S
From India, Bangalore
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From India, Bangalore
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EDLI CALCULATION Insurance & Bonus 50% of average balance..xls
EDLI 18 June 2010 amendment.pdf