Dear Sir,
Please clear the concept of EDLI benefits under the EPF scheme.
If Employees completed 3 Yrs service and basic salary is 6500 , what amount of benefit to be received by his nominee in case of individual death.
Regds
Mahender
From India, Delhi
Please clear the concept of EDLI benefits under the EPF scheme.
If Employees completed 3 Yrs service and basic salary is 6500 , what amount of benefit to be received by his nominee in case of individual death.
Regds
Mahender
From India, Delhi
Dear Mahender,
All employers to whom the Employee's Provident Fund and Miscellaneous Provisions Act, 1952 applies, have a statutory liability to contribute to Employee's Deposit Linked Insurance scheme, 1976 to provide the benefit of Life Insurance to all their employees.
Under the scheme as amended with effect from 18th June, 2010
a) Insurance benefit is the average balance of the Provident Fund during the last 12 months (Provided that such balance does not exceeds Rs.1,00,000/- INR)
b) Insurance cover would be equal to Rs.50,000 plus 40% of the amount in excess of Rs.50,000 subject to a maximum of Rs.1,00,000.
c) The contribution @ 0.50% of each employee's salary is payable by the Employer to the Provident Fund Authorities.
For example:
a) If PF deposit is Rs.50,000, EDLI Benefit – Rs. 50,000
b) If PF deposit Rs. 1,00,000, EDLI Benefit – Rs.70,000 (50,000+20,000)
(For 1st 50,000 – 50,000, Next 50,000 – 40% of 50,000 i.e. Rs.20,000)
c) Deposit Rs. 2,00,000 EDLI Benefit – Rs.1,00,000 (50,000+50,000)
(For 1st 50,000 – 50,000, Next 1,50,000 – 40% of 1,50,000 i.e. Rs.60,000 - Total - Rs. 1,10,000 (will get Rs.1,00,000 only as it exceeds 1,00,000).
Hope this is clear to you.
Regards,
Avinash K.
From India, Mumbai
60All employers to whom the Employee's Provident Fund and Miscellaneous Provisions Act, 1952 applies, have a statutory liability to contribute to Employee's Deposit Linked Insurance scheme, 1976 to provide the benefit of Life Insurance to all their employees.
Under the scheme as amended with effect from 18th June, 2010
a) Insurance benefit is the average balance of the Provident Fund during the last 12 months (Provided that such balance does not exceeds Rs.1,00,000/- INR)
b) Insurance cover would be equal to Rs.50,000 plus 40% of the amount in excess of Rs.50,000 subject to a maximum of Rs.1,00,000.
c) The contribution @ 0.50% of each employee's salary is payable by the Employer to the Provident Fund Authorities.
For example:
a) If PF deposit is Rs.50,000, EDLI Benefit – Rs. 50,000
b) If PF deposit Rs. 1,00,000, EDLI Benefit – Rs.70,000 (50,000+20,000)
(For 1st 50,000 – 50,000, Next 50,000 – 40% of 50,000 i.e. Rs.20,000)
c) Deposit Rs. 2,00,000 EDLI Benefit – Rs.1,00,000 (50,000+50,000)
(For 1st 50,000 – 50,000, Next 1,50,000 – 40% of 1,50,000 i.e. Rs.60,000 - Total - Rs. 1,10,000 (will get Rs.1,00,000 only as it exceeds 1,00,000).
Hope this is clear to you.
Regards,
Avinash K.
From India, Mumbai
EDLI is a kind of Insurance policy provied by EPFO. In this scheme, the employer contributes 0.5% of employee\'s Basic+DA into EDLI scheme, and 0.01% as administration charge to maintain EDLI to EPFO.
If an employee is under EPF Act, then he/she has to be insured by EDLI, until and unless the employer proves that the employer can provide a better insurance policy than that EPFO provides.
If an employee has Basic+DA more than Rs.6500 (let say Rs.8000), then employee will contribute 12% of Rs.8000, but the employer has to contribute 13.61% (3.67%+8.33%+1.1%+0.5%+0.01%) on only Rs.6500. There is no need to contribute on Rs.8000 by the employer.
From India, Delhi
If an employee is under EPF Act, then he/she has to be insured by EDLI, until and unless the employer proves that the employer can provide a better insurance policy than that EPFO provides.
If an employee has Basic+DA more than Rs.6500 (let say Rs.8000), then employee will contribute 12% of Rs.8000, but the employer has to contribute 13.61% (3.67%+8.33%+1.1%+0.5%+0.01%) on only Rs.6500. There is no need to contribute on Rs.8000 by the employer.
From India, Delhi
Sir,
To claim EDLI benefit the main criteria is that the death must have occured while in service. In the instant if the death had occurred while in service and if he had served with the same employer for 12 months, then the benefit would be 1,30,000/-
From India, Vellore
To claim EDLI benefit the main criteria is that the death must have occured while in service. In the instant if the death had occurred while in service and if he had served with the same employer for 12 months, then the benefit would be 1,30,000/-
From India, Vellore
There is no time limit. The only condition is that death must have occurred while in service Regards
From India, Vellore
From India, Vellore
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EDLI Benefit increased.pdf
EDLI CALCULATION.xls x