What is EDLI: In case of untimely death, the nominee of the employees gets a death benefit of Rs 7 lakh. At the same time, employees have to contribute to the EPS and EPF schemes. The employee does not have to make any contribution in the EDLI scheme.
Employee Provident Fund Organisation: If you are employed and a member of EPFO, then this news is useful for you. Yes, you hardly know that three schemes are operated by EPFO. EPF Scheme, 1952; Pension Scheme, 1995 (EPS); And Employee Deposit-Linked Insurance (EDLI) scheme? EDLI scheme is available to all employees contributing to EPFO. Under the scheme, in case of untimely death, the nominee of the employees gets a death benefit of Rs 7 lakh. At the same time, employees have to contribute to the EPS and EPF schemes. The employee does not have to make any contribution in the EDLI scheme. Only the employer contributes to this.
Scheme started in 1976
Experts say that EDLI is one of the benefits given by EPFO in the form of insurance protection to its family members in case of unfortunate death of any employee. It was introduced in 1976 and all organizations covered under the Employees’ Provident Fund Act 1952 get enrolled for EDLI benefits by default. If you want to take a higher paying life insurance cover, then you can exit from this plan.
Contribution of EDLI
Employees and employers contribute to EPF. However, under the EDLI scheme, the employer’s contribution is only 0.5% of Basic+DA. It is up to a maximum of 75 rupees. Also, there is no restriction on the company you are dealing with. However, this scheme is applicable only if you have worked continuously for one year. Also you should be an active member of EPF.
EDLI calculation
The calculation of EDLI is quite easy. Its calculation is done by taking 35 times the average monthly income of the employee in the last 12 months of employment. Its maximum is limited to the average monthly salary. For example, if your salary is Rs 15,000, then the maximum limit is 35 times i.e. Rs 35 x 15,000 = Rs 5.25 lakh. The organization adds a bonus amount of up to Rs 1.75 lakh to make the total payable amount under the scheme Rs 7 lakh. In this way, together it becomes 7 lakh rupees.
How to claim if needed?
In case of untimely demise, the nominee will have to claim PF, pension withdrawal and EDLI claims with all the documents related to the claim. The nominee should have the death certificate or succession certificate of the employee. In addition, a copy of the canceled check of the bank account in which the payment option has been chosen should also be accompanied.
