EPFO EDLI Scheme | Employee Deposit Linked Insurance | Life Insurance of Rs. 2.5 to 6 lakh for EPF members
EPFO (Employee Provident
Fund Organisation) has increased the minimum assurance limit under EDLI
(Employee Deposit Linked Insurance) scheme for its EPF members through a
gazette notification dated February 15, 2018.
EPFO has enhanced the minimum assurance benefits from existing Rs. 1.5 lakh to Rs. 2.5 lakh. Earlier the minimum assurance limit was Rs.1.5 lakh and the maximum was Rs.6 lakh.
Now the minimum assurance benefit to an eligible employee will be 2.5 lakh and the maximum assurance benefit will be Rs 6 lakh.
EPFO has enhanced the minimum assurance benefits from existing Rs. 1.5 lakh to Rs. 2.5 lakh. Earlier the minimum assurance limit was Rs.1.5 lakh and the maximum was Rs.6 lakh.
Now the minimum assurance benefit to an eligible employee will be 2.5 lakh and the maximum assurance benefit will be Rs 6 lakh.
Employee Deposit Linked Insurance (EDLI) Scheme
Employee Deposit Linked
Insurance (EDLI) Scheme is an insurance policy to give insurance cover to the life of the employees of organised sector.
EDLI scheme is similar to group term insurance. All the members of EPF are automatically covered under EDLI scheme.
The assurance benefit is paid to the employee’s family in the event of the death of the employee during the service period.
Also read: Things you must know about EPF (Employees' Provident Fund)
EDLI scheme is similar to group term insurance. All the members of EPF are automatically covered under EDLI scheme.
The assurance benefit is paid to the employee’s family in the event of the death of the employee during the service period.
Also read: Things you must know about EPF (Employees' Provident Fund)
Features of EDLI (Employee Deposit Linked Insurance) Scheme
Following are the main
features of EDLI or Employee Deposit Linked Insurance Scheme.
1. All the employees who
have EPF account are automatically covered under EDLI scheme.
2. EPF members are covered from the
first day of service under EDLI scheme.
3. The life insurance coverage is for 24
hours (working hours and non-working hours).
4. The scheme covers the death of the employee irrespective of the cause
of death.
5. The nomination under EPF scheme will
be considered for the EDLI scheme also. Therefore, one need not separately add
a nominee for EDLI scheme.
6. The coverage under EDLI is directly
based on the salary of the employee.
7. Premium payable is similar for all
the employees irrespective of age or gender.
8. The contribution (0.5 percent of the
employee’s wages) towards EDLI scheme is payable by the employer.
Contribution under EDLI Scheme
The employee will not
contribute to EDLI separately to avail the benefits of EDLI scheme. Only the employer
will contribute to EDLI scheme.
The contribution by the employer is 0.5% of the employee’s salary (Basic pay + Dearness Allowance).
The maximum contribution to be paid by the employer is capped at 0.5% of Rs.15,000 or Rs.75 per month.
The contribution by the employer is 0.5% of the employee’s salary (Basic pay + Dearness Allowance).
The maximum contribution to be paid by the employer is capped at 0.5% of Rs.15,000 or Rs.75 per month.
Life Insurance Benefit under EDLI Scheme
Under the EDLI scheme, now
the minimum life insurance benefit to an eligible EPF employee will be 2.5 lakh
and the maximum assurance benefit will be Rs 6 lakh.
Gazette Notification
Please refer the Gazette
Notification issued by the Government of India.
Click here for Notification -
Employees’ Deposit Linked Insurance (Amendment) Scheme 2018.
Image of Notification
How is the Benefit under EDLI Scheme calculated?
The average monthly salary
(Basic Pay + Dearness Allowances) drawn (subject to a maximum of fifteen
thousand rupees), during the last twelve months preceding the month in which the
employee died, multiplied by 30 times plus 50% percent of the average balance
in the account of the deceased in the provident fund during the preceding
twelve months or during the period of his or her membership, whichever is less.
The minimum payable assurance benefit shall not be less than RS. 2.5 lakh and the maximum payable assurance benefit shall not exceed Rs. 6 lakh.
The minimum payable assurance benefit shall not be less than RS. 2.5 lakh and the maximum payable assurance benefit shall not exceed Rs. 6 lakh.
You may also like to read: How to withdraw EPF online through UAN?
You may also like to read: Online correction in Name, DOB & Gender in EPF UAN
You may also like to read: How to register EPF/PF complaint online?
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EPFO EDLI Scheme | Employee Deposit Linked Insurance | Life Insurance of Rs. 2.5 to 6 lakh for EPF members.
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