I want to know more about EDLI and pension fund benefits, related forms, etc. I am a bit confused about EDLI and the pension fund. Could someone please provide me with information regarding this matter according to the P.F. Act of 1952?
Thanks,
Ravinder Kumar
From India, Jhajjar
Thanks,
Ravinder Kumar
From India, Jhajjar
Manual HR is outdated! Let automation handle payroll, leave & more. See It In Action - Book Your Demo
Dear Ravinder Kumar,
I. EDLI
EDLI is the abbreviation of Employees' Deposit Linked Insurance Scheme. Here, deposit means the average deposit in EPF. When an employee dies while in service, the family will receive some compensation based on his/her deposit. To make a claim, the employer has to pay 0.5% as its premium.
1. Determination of Deposit
The average deposit of the last twelve months as well as total service will be calculated, and whichever is less will be taken for the calculation.
2. Determination of Compensation
Up to Rs. 50,000/-, he will receive the actual amount. Beyond the first Rs. 50,000/-, he will get 40% of the rest; subject to a ceiling of Rs. 100,000/-.
For example,
a) Deposit Rs. 100,000
For the first Rs. 50,000 - Rs. 50,000, Next Rs. 50,000 - Rs. 20,000
Total - Rs. 70,000 (will receive the full amount as it is not more than Rs. 100,000).
b) Deposit Rs. 200,000
For the first Rs. 50,000 - Rs. 50,000, Next Rs. 150,000 - Rs. 60,000
Total - Rs. 110,000 (will receive Rs. 100,000 only as it exceeds Rs. 100,000).
c) Deposit Rs. 300,000
For the first Rs. 50,000 - Rs. 50,000, Next Rs. 250,000 - Rs. 100,000
Total - Rs. 150,000 (will receive Rs. 100,000 only as it exceeds Rs. 100,000/-)
However, there are better insurance schemes with the same premium, even without considering the deposits. Some organizations are exempted from EDLI and provide better benefits in lieu of it, offering schemes that specify more than Rs. 100,000/- for natural death and double benefits for accidental death.
II. Pension Fund
Out of the employer's contribution, 8.33% (subject to a ceiling salary of Rs. 6500/- & maximum contribution Rs. 541, presently) will go to the Pension Fund. I will provide some details on pension calculation as follows:
There is no upper limit for EPS-95 pension. For pension calculation, the service will be divided into two parts: service before 16.11.95 and service from 16.11.95 onwards. The former is known as past service and the latter as pensionable service. Past service is divided into 4 slabs: service up to 11 years, 12 to 15 years, 16 to 19 years, and 20 & above.
If the salary on 16.11.95 is below Rs. 2500, the monthly compensation will be Rs. 80, 95, 120 & 150 respectively. For Rs. 2500 & above, it will be Rs. 85, 105, 135 & 170. This amount is for those who attain 58 years on 16.11.95. For those who attain 58 years after 16.11.95, the compensation will be multiplied by a factor stipulated in table B, according to the difference between 16.11.95 and the date of completion of 58 years.
For pensionable service, there is a formula to calculate pension: Pensionable Salary x Pensionable Service / 70. Pensionable salary can be categorized into 3 groups:
1) Below Rs. 6500.
2) Rs. 6500 & above, but contribution on the statutory ceiling of Rs. 6500.
3) Above Rs. 6500 & opted to contribute on actual salary.
In the case of the 2nd group, the pensionable salary is Rs. 6500. In the other two cases, the pensionable salary will be the average of the last twelve months. Additionally, if the pensionable service is 20 years & above, a 2-year bonus will be given.
For further details, please visit the website: [EPFO](http://epfindia.com)
I will provide an example:
Date of Birth - 2.1.1961
Date of Joining - 23.2.1987
Salary on 16.11.95 - Rs. 2500 & above
Salary on completion of 58 years on 1.1.2019 - Rs. 6500 (Statutory Ceiling)
Past Service - 8 yr 9 m (approx.) rounded to 9 years
Compensation - Rs. 85
Factor as per Table B (for less than 24 years, i.e., the difference between 16.11.95 & 1.1.2019) - 6.102
(This can be calculated as 1.08 to the power of 24 - 0.5, correct to 3 decimals)
Past Service Benefit - 85 x 6.102 = Rs. 519 - (A)
Pensionable Service - 23 years
Bonus (Service is 20 & above) - 2
Pensionable Salary - Rs. 6500
Pensionable Benefit - 6500 x 25 / 70 = 2321 - (B)
Total Pension - (A) + (B) = Rs. 2840
Apart from the above method of calculation, there will be a minimum for those who have service before 16.11.95. In the EPS-95, they are categorized into three groups:
1. Date of commencement of Pension before 16.11.2000
2. Date of commencement of Pension between 16.11.2000 & 16.11.2005
3. Date of commencement of Pension after 16.11.2005
As the first two categories are already over, I will provide a brief overview of the third.
The pensionable benefit (minimum) of Rs. 635 and past service benefit as mentioned above, subject to a minimum of Rs. 800. This amount is for 24 years or more of service. If it is less than 24 years, this will be reduced proportionately (amount x actual service / 24). However, this amount will be subject to a minimum of Rs. 450.
I will include an Excel worksheet to calculate the pension. Enter the Date of Birth, Date of Joining, Date of Separation from Service, Salary on 16.11.95, Salary on Separation from Service (in compliance with the contribution to the pension fund), and break in service before and after 16.11.95, if any, in the green-colored columns. The results will appear in the yellow-colored columns. The red color is for static information.
If there are any errors or suggestions, please notify me.
Abbas P.S., ITI Ltd, PALAKKAD - 678 623
Ph. +91 9447 467 667
From India, Bangalore
530I. EDLI
EDLI is the abbreviation of Employees' Deposit Linked Insurance Scheme. Here, deposit means the average deposit in EPF. When an employee dies while in service, the family will receive some compensation based on his/her deposit. To make a claim, the employer has to pay 0.5% as its premium.
1. Determination of Deposit
The average deposit of the last twelve months as well as total service will be calculated, and whichever is less will be taken for the calculation.
2. Determination of Compensation
Up to Rs. 50,000/-, he will receive the actual amount. Beyond the first Rs. 50,000/-, he will get 40% of the rest; subject to a ceiling of Rs. 100,000/-.
For example,
a) Deposit Rs. 100,000
For the first Rs. 50,000 - Rs. 50,000, Next Rs. 50,000 - Rs. 20,000
Total - Rs. 70,000 (will receive the full amount as it is not more than Rs. 100,000).
b) Deposit Rs. 200,000
For the first Rs. 50,000 - Rs. 50,000, Next Rs. 150,000 - Rs. 60,000
Total - Rs. 110,000 (will receive Rs. 100,000 only as it exceeds Rs. 100,000).
c) Deposit Rs. 300,000
For the first Rs. 50,000 - Rs. 50,000, Next Rs. 250,000 - Rs. 100,000
Total - Rs. 150,000 (will receive Rs. 100,000 only as it exceeds Rs. 100,000/-)
However, there are better insurance schemes with the same premium, even without considering the deposits. Some organizations are exempted from EDLI and provide better benefits in lieu of it, offering schemes that specify more than Rs. 100,000/- for natural death and double benefits for accidental death.
II. Pension Fund
Out of the employer's contribution, 8.33% (subject to a ceiling salary of Rs. 6500/- & maximum contribution Rs. 541, presently) will go to the Pension Fund. I will provide some details on pension calculation as follows:
There is no upper limit for EPS-95 pension. For pension calculation, the service will be divided into two parts: service before 16.11.95 and service from 16.11.95 onwards. The former is known as past service and the latter as pensionable service. Past service is divided into 4 slabs: service up to 11 years, 12 to 15 years, 16 to 19 years, and 20 & above.
If the salary on 16.11.95 is below Rs. 2500, the monthly compensation will be Rs. 80, 95, 120 & 150 respectively. For Rs. 2500 & above, it will be Rs. 85, 105, 135 & 170. This amount is for those who attain 58 years on 16.11.95. For those who attain 58 years after 16.11.95, the compensation will be multiplied by a factor stipulated in table B, according to the difference between 16.11.95 and the date of completion of 58 years.
For pensionable service, there is a formula to calculate pension: Pensionable Salary x Pensionable Service / 70. Pensionable salary can be categorized into 3 groups:
1) Below Rs. 6500.
2) Rs. 6500 & above, but contribution on the statutory ceiling of Rs. 6500.
3) Above Rs. 6500 & opted to contribute on actual salary.
In the case of the 2nd group, the pensionable salary is Rs. 6500. In the other two cases, the pensionable salary will be the average of the last twelve months. Additionally, if the pensionable service is 20 years & above, a 2-year bonus will be given.
For further details, please visit the website: [EPFO](http://epfindia.com)
I will provide an example:
Date of Birth - 2.1.1961
Date of Joining - 23.2.1987
Salary on 16.11.95 - Rs. 2500 & above
Salary on completion of 58 years on 1.1.2019 - Rs. 6500 (Statutory Ceiling)
Past Service - 8 yr 9 m (approx.) rounded to 9 years
Compensation - Rs. 85
Factor as per Table B (for less than 24 years, i.e., the difference between 16.11.95 & 1.1.2019) - 6.102
(This can be calculated as 1.08 to the power of 24 - 0.5, correct to 3 decimals)
Past Service Benefit - 85 x 6.102 = Rs. 519 - (A)
Pensionable Service - 23 years
Bonus (Service is 20 & above) - 2
Pensionable Salary - Rs. 6500
Pensionable Benefit - 6500 x 25 / 70 = 2321 - (B)
Total Pension - (A) + (B) = Rs. 2840
Apart from the above method of calculation, there will be a minimum for those who have service before 16.11.95. In the EPS-95, they are categorized into three groups:
1. Date of commencement of Pension before 16.11.2000
2. Date of commencement of Pension between 16.11.2000 & 16.11.2005
3. Date of commencement of Pension after 16.11.2005
As the first two categories are already over, I will provide a brief overview of the third.
The pensionable benefit (minimum) of Rs. 635 and past service benefit as mentioned above, subject to a minimum of Rs. 800. This amount is for 24 years or more of service. If it is less than 24 years, this will be reduced proportionately (amount x actual service / 24). However, this amount will be subject to a minimum of Rs. 450.
I will include an Excel worksheet to calculate the pension. Enter the Date of Birth, Date of Joining, Date of Separation from Service, Salary on 16.11.95, Salary on Separation from Service (in compliance with the contribution to the pension fund), and break in service before and after 16.11.95, if any, in the green-colored columns. The results will appear in the yellow-colored columns. The red color is for static information.
If there are any errors or suggestions, please notify me.
Abbas P.S., ITI Ltd, PALAKKAD - 678 623
Ph. +91 9447 467 667
From India, Bangalore
Looking for something specific? - Join & Be Part Of Our Community and get connected with the right people who can help. Our AI-powered platform provides real-time fact-checking, peer-reviewed insights, and a vast historical knowledge base to support your search.