Hi, Anybody tell me what is the benefits in EDLI & Labour Welfare Fund for employees
From India, Madras
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1From India, Madras
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Hi,
Assurance Benefit:
The benefit provided under the Employees' Deposit Linked Insurance Scheme is called Assurance Benefit. In the event of the member's death while in service, the nominee or any other person entitled to receive the Provident Fund benefits will, in addition to the Provident Fund, receive the Assurance Benefit under Employees' Deposit Linked Insurance Scheme.
Scale of Assurance Benefit:
From 1-4-93 onwards, the amount of Assurance Benefit payable is an amount equal to the average balance in the deceased member's Fund during the preceding 12 months or the period of membership, whichever is less. Where the average balance exceeds Rs. 25,000, the amount payable shall be Rs. 25,000 plus 25% of the amount in excess of Rs. 25,000, subject to a ceiling of Rs. 35,000. The prescribed form for claiming the Assurance Benefits under the Employees' Deposit Linked Insurance Scheme, 1976, is Form 5(IF).
Labour Welfare Fund shall be utilized for the following activities:
(a) Community and social education centers including Reading Rooms and Libraries;
(b) Community necessities;
(c) Games and sports;
(d) Excursions, tours, and holiday homes;
(e) Entertainment and other forms of recreation;
(f) Home industries and subsidiary occupations for unemployed persons;
(g) Corporate activities of a social nature;
(h) Cost of administering the Act (including the salaries, allowances, pension, provident fund, gratuity, and any other fringe benefits of the staff) appointed for the purposes of the Act; and
(i) Such other objects as would, in the opinion of the State Government, improve the standard of living and ameliorate the social conditions of labor.
From India, Pune
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Assurance Benefit:
The benefit provided under the Employees' Deposit Linked Insurance Scheme is called Assurance Benefit. In the event of the member's death while in service, the nominee or any other person entitled to receive the Provident Fund benefits will, in addition to the Provident Fund, receive the Assurance Benefit under Employees' Deposit Linked Insurance Scheme.
Scale of Assurance Benefit:
From 1-4-93 onwards, the amount of Assurance Benefit payable is an amount equal to the average balance in the deceased member's Fund during the preceding 12 months or the period of membership, whichever is less. Where the average balance exceeds Rs. 25,000, the amount payable shall be Rs. 25,000 plus 25% of the amount in excess of Rs. 25,000, subject to a ceiling of Rs. 35,000. The prescribed form for claiming the Assurance Benefits under the Employees' Deposit Linked Insurance Scheme, 1976, is Form 5(IF).
Labour Welfare Fund shall be utilized for the following activities:
(a) Community and social education centers including Reading Rooms and Libraries;
(b) Community necessities;
(c) Games and sports;
(d) Excursions, tours, and holiday homes;
(e) Entertainment and other forms of recreation;
(f) Home industries and subsidiary occupations for unemployed persons;
(g) Corporate activities of a social nature;
(h) Cost of administering the Act (including the salaries, allowances, pension, provident fund, gratuity, and any other fringe benefits of the staff) appointed for the purposes of the Act; and
(i) Such other objects as would, in the opinion of the State Government, improve the standard of living and ameliorate the social conditions of labor.
From India, Pune
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EDLI is an insurance scheme due on the death of a PF member, in addition to the deposit in PF.
EDLI is the abbreviation of Employees' Deposit Linked Insurance Scheme. Here, the 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 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/-.
[Previously the ceiling was Rs. 35,000. However, the ceiling was enhanced to Rs. 60,000 vide GSR 690(E) dated 26.9.2008 and to Rs. 100,000 vide GSR 523E. Although it was decided to enhance it again to Rs. 130,000 in the CBT (EPF) meeting dated 15.9.2010, the notification has not been issued yet.]
Examples:
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 does not exceed 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. With these 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.
Regarding employee benefits, this is advisable because if an employee dies immediately after joining EPF, they will receive only a nominal amount equivalent to one month's contribution to PF. But if it is in lieu of EDLI, a minimum of Rs. 1,02,000 is assured.
Abbas.P.S, ITI Ltd, Palakkad 678 623.
Ph. +91 9447 467 667
From India, Bangalore
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EDLI is the abbreviation of Employees' Deposit Linked Insurance Scheme. Here, the 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 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/-.
[Previously the ceiling was Rs. 35,000. However, the ceiling was enhanced to Rs. 60,000 vide GSR 690(E) dated 26.9.2008 and to Rs. 100,000 vide GSR 523E. Although it was decided to enhance it again to Rs. 130,000 in the CBT (EPF) meeting dated 15.9.2010, the notification has not been issued yet.]
Examples:
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 does not exceed 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. With these 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.
Regarding employee benefits, this is advisable because if an employee dies immediately after joining EPF, they will receive only a nominal amount equivalent to one month's contribution to PF. But if it is in lieu of EDLI, a minimum of Rs. 1,02,000 is assured.
Abbas.P.S, ITI Ltd, Palakkad 678 623.
Ph. +91 9447 467 667
From India, Bangalore
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