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Dear SC Employee's deposit Linked Insurance scheme[EDLI] was introduced in the year 1976 under section 6C of the Employee's Provident Fund & Misc.Provisions Act,1952. Objective of the scheme was to provide Life Insurance benefits to employees of any establishment or class of establishments to which the EPF&MP Act applies. Under Subsection 2 of section 6C of act, only employer has to contribute towards the deposit linked insurance fund. Currently the rate of contribution by employer is 0.50% of the wages on which EPF deductions are being made subject to maximum on salary of Rs.6500.00 per month. The amount thus worked out is required to be deposited in the account head No.21 of the EPF deposit challan. Under Subsection 4a of section6C of the act employer has to further contribute towards the fund at the notified rate in connection with the administration of the Insurance scheme. Current rate of contribution is 0.01% of the wages/salary on which EPF deductions are being made subject to maximum salary of Rs.6500.00 per month. Minimum contributions to be paid by employer are Rs.2.00 and the same is to be under Account Head No.22 of the EPF challan. Under this scheme the sum lying in the EPF account of member including employer's share of EPF contribution is insured for a an amount notified in the scheme. Current notified amount is Rs.60000.00( Rs.Sixty thousand only) Benefits under this scheme are called Assurance benefits and are available to the nominee of deceased member who dies during the course of employment / continuation of membership. In the case of death of member during the course of employment , these benefits are to be claimed by nominee along with EPF and FPS benefits. The form for claiming the benefits is FORM NO.5(IF) of the EPF scheme. Exemption from this scheme is also available under section 17(2A) of the act and Para 28 of the scheme. Exemption is granted from the scheme subject to condition that employer should formulate and implement a scheme which is more beneficial with respect to Life insurance than this scheme. LIC of india has already floated the scheme and exemptions are being grated to employers who made the LIC scheme applicable and also requested to RPFC ( Regional Provident fund commissioner) for exemption from the statutory scheme of EDLI. In case , a organisation has been exempted from the statutory provisions then employer is not required to contribute under Account Head No.21 i.e no regular monthly contributions as required under the statutory scheme are to be made by the employer. Also in account head No.22. The administrative charges will not be paid by the employer but Inspection Charges are to be paid under the account head 22. Rate of contribution for this will be 0.005% of the salary / wages subject to maximum salary of Rs.6500.00 per month. Minimum contribution in this head is Rs.1.00. I hope this will help you to under stand the scheme and benefits provided under the scheme. Regards Anil Anand
From India, New Delhi
From India, New Delhi
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