Dear Seniors, What are EDLI (Employee Deposit Linked Insurance) benefits and can it be claimed? Look forward to your valuable replies. Thank you. J P Das
From India, Delhi
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1From India, Delhi
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The PF accumulations will start with low investments at the beginning and end with high amounts, provided no non-refundable loan is taken. If a loan is applied, the figures will again change.
Suppose a member has 5 lakh rupees in his account at the end of service. Let his average accumulation for the total service be Rs. 2 lakhs and Rs. 4 lakhs for the last 12 months. Out of the above two, whichever is less, i.e., Rs. 2 lakhs, will be taken for calculation.
Out of the Rs. 2,00,000, for the first 50,000; EDLI is actual, i.e., 50,000 - (1).
For the balance 1,50,00, EDLI will be 40%, i.e., 60,000 - (2).
(1) + (2) = 1,10,000.
But the ceiling for the above calculation is Rs. 1,00,000 - (A).
Let his salary be:
i) Rs. 4000
ii) Rs. 5000
iii) Rs. 6500
iv) Rs. 8000
20 times of the salary will be - (B)
i) 80,000
ii) 1,00,000
iii) 1,30,000
iv) 1,60,000
As there is a ceiling limit of 1,30,000, serial (iv) will also be treated as 1,30,000.
Hence, whichever is higher of the above (A) & (B) will be taken as EDLI benefit as under.
i) 1,00,000
ii) 1,00,000
iii) 1,30,000
iv) 1,30,000
Abbas.P.S
From India, Bangalore
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Suppose a member has 5 lakh rupees in his account at the end of service. Let his average accumulation for the total service be Rs. 2 lakhs and Rs. 4 lakhs for the last 12 months. Out of the above two, whichever is less, i.e., Rs. 2 lakhs, will be taken for calculation.
Out of the Rs. 2,00,000, for the first 50,000; EDLI is actual, i.e., 50,000 - (1).
For the balance 1,50,00, EDLI will be 40%, i.e., 60,000 - (2).
(1) + (2) = 1,10,000.
But the ceiling for the above calculation is Rs. 1,00,000 - (A).
Let his salary be:
i) Rs. 4000
ii) Rs. 5000
iii) Rs. 6500
iv) Rs. 8000
20 times of the salary will be - (B)
i) 80,000
ii) 1,00,000
iii) 1,30,000
iv) 1,60,000
As there is a ceiling limit of 1,30,000, serial (iv) will also be treated as 1,30,000.
Hence, whichever is higher of the above (A) & (B) will be taken as EDLI benefit as under.
i) 1,00,000
ii) 1,00,000
iii) 1,30,000
iv) 1,30,000
Abbas.P.S
From India, Bangalore
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Dear Mr. Abbas,
Thank you very much for your help and for taking the time to explain it so clearly. Just to clarify, does this mean that Rs. 1,30,000 is payable to an employee upon superannuation? I am a bit confused about the salary figures mentioned in points i, ii, iii & iv. Could you also explain why it is 20 times the salary under (B)?
I would appreciate your assistance in understanding this better. Thank you once again for your help.
Regards,
J P Das
From India, Delhi
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Thank you very much for your help and for taking the time to explain it so clearly. Just to clarify, does this mean that Rs. 1,30,000 is payable to an employee upon superannuation? I am a bit confused about the salary figures mentioned in points i, ii, iii & iv. Could you also explain why it is 20 times the salary under (B)?
I would appreciate your assistance in understanding this better. Thank you once again for your help.
Regards,
J P Das
From India, Delhi
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Dear JP Das,
EDLI is an insurance amount on PF. The eligibility to get EDLI is death while in service. I, II, III, and IV are 4 salary classes. (EDLI may vary subject to salary also.)
20 times is the decision taken by the Central Board of Trustees (EPF) on 15.09.2010 presided over by the Chairman and the Hon'ble Union Minister for Labour and Employment, Shri. Mallikarjuna Kharge. You may write this question to CBT asking on what grounds they have taken such a decision.
From India, Bangalore
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EDLI is an insurance amount on PF. The eligibility to get EDLI is death while in service. I, II, III, and IV are 4 salary classes. (EDLI may vary subject to salary also.)
20 times is the decision taken by the Central Board of Trustees (EPF) on 15.09.2010 presided over by the Chairman and the Hon'ble Union Minister for Labour and Employment, Shri. Mallikarjuna Kharge. You may write this question to CBT asking on what grounds they have taken such a decision.
From India, Bangalore
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Employees' Deposit Linked Ins Scheme 1976.pdf
Group Insurance Scheme in Lieu Of EDLI.doc