Dear Seniors,
Please let me know what's wrong with this issue and your view on it. One employee of our company died on 23.03.19 due to natural causes. However, before his death, he was on unpaid leave from 01.03.19 until his passing. The date of exit was 23.03.19 with the reason stated as death.
The EPF office rejected the EDLI claim citing that the monthly contribution of the deceased member was paid by the employer only up to 03/2019, indicating that the wages were for February 2019, whereas the member passed away on 23.03.2019. Employers are expected to pay contributions for the month of 04/2019. This implies that the member did not die while in service, as EDLI benefits are typically paid to employees who pass away during their service period.
Please advise if the member's spouse will be eligible to receive the EDLI claim or not.
From India, Lucknow
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2Please let me know what's wrong with this issue and your view on it. One employee of our company died on 23.03.19 due to natural causes. However, before his death, he was on unpaid leave from 01.03.19 until his passing. The date of exit was 23.03.19 with the reason stated as death.
The EPF office rejected the EDLI claim citing that the monthly contribution of the deceased member was paid by the employer only up to 03/2019, indicating that the wages were for February 2019, whereas the member passed away on 23.03.2019. Employers are expected to pay contributions for the month of 04/2019. This implies that the member did not die while in service, as EDLI benefits are typically paid to employees who pass away during their service period.
Please advise if the member's spouse will be eligible to receive the EDLI claim or not.
From India, Lucknow
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Dear Shashanksri ji,
In my view, it is a wrong rejection. For EDLI claim, there are two criteria. One is the deceased should be a member of PF. The other is the "assurance benefit" is linked to the average balance during the 12 months before the death in the Provident Fund account of the deceased. You are advised to write to RPFC and resubmit the form. Otherwise, take the grievance to Nidhi Aapke Nikat.
From India, Mumbai
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In my view, it is a wrong rejection. For EDLI claim, there are two criteria. One is the deceased should be a member of PF. The other is the "assurance benefit" is linked to the average balance during the 12 months before the death in the Provident Fund account of the deceased. You are advised to write to RPFC and resubmit the form. Otherwise, take the grievance to Nidhi Aapke Nikat.
From India, Mumbai
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Dear Mr. Shashank,
Please verify the March 2019 ECR filed by your company. Is the deceased employee's name mentioned? Are the NCP (Non-Contribution Period) days specified for the deceased employee? Has the employer paid the EDLI (Employees' Deposit Linked Insurance) contribution for the deceased employee?
If the employee was on loss of pay or non-contribution days, the employer is obligated to pay EDLI contribution at a rate of 0.50% on the EDLI wages.
Thank you.
From India, New Delhi
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Please verify the March 2019 ECR filed by your company. Is the deceased employee's name mentioned? Are the NCP (Non-Contribution Period) days specified for the deceased employee? Has the employer paid the EDLI (Employees' Deposit Linked Insurance) contribution for the deceased employee?
If the employee was on loss of pay or non-contribution days, the employer is obligated to pay EDLI contribution at a rate of 0.50% on the EDLI wages.
Thank you.
From India, New Delhi
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(Fact Checked)-The user reply contains accurate information regarding the need for the employer to pay EDLI contributions even during non-contributory days. The response is correct. (1 Acknowledge point)
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For EDLI benefits, the employer needs to provide a certificate to EPFO stating whether the deceased employee was on the company's payroll or not. If the employee was on the company's payroll, their family would be eligible for EDLI benefits. If not, they will not be eligible. EPFO will make a decision based on the certificate provided by the employer.
In cases of non-payment for a specific month, it should be stated that the member was on loss of pay, even though they were on the company's payroll and did not attend the office due to illness.
From India, Mumbai
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In cases of non-payment for a specific month, it should be stated that the member was on loss of pay, even though they were on the company's payroll and did not attend the office due to illness.
From India, Mumbai
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(Fact Check Failed/Partial)-The user reply is incorrect. According to the Employees' Deposit Linked Insurance (EDLI) Scheme, the deceased employee's family is eligible for EDLI benefits irrespective of whether the employee was on leave without pay or not. The key criterion is the member's coverage under EPF, not the payment of contributions post the date of death.
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This is a serious issue. There is a difference between exit date and last working day. If the employee had worked till 23/3/2019, the last working day should be 23/3/2019. But if you put that date as the exit date, the dependents of the deceased will not get the EDLI benefits which are payable only if the death happens while in service. But if you put 24th as the exit date, he would have got it.
The above philosophy of putting a later date will not be applicable in the case of an employee leaving your organization and joining some other organization where PF is covered. Consider that the employee has worked in Company X till the 23rd and he joins company Y on the 24th. In this case, the last working day should be the exit date in company X because if you put the 24th as the exit date, he cannot put the 24th as the joining date in company Y. This is actually an issue that can cause future confusions. Therefore, ideally, in death cases, a date later than the date of death shall be put as the exit date whereas in the case of resignation, the date should be the last working day.
If the last month payout was zero, his contribution to EDLI should also be zero. Therefore, the ECR will not prove that his death happened while in service. You have to establish that he was hospitalized and since he had no leave to his credit, he was approved to take leave without pay and unfortunately, he passed away while undergoing treatment. Alternatively, if his death is not due to any illness but he had taken leave for some other reason, that can also be noted. But what is important is that there should be a leave letter and the death should occur during the period of leave. You should also produce the muster roll with his name appearing among the employees for the month of February (the month preceding the month of death) and March (the month of death). In case the employee was a member of ESI, the contribution history for February, March (with nil contribution), and April (with a note that he left/expired) shall be useful. In case covered by medical insurance, any communication/monthly returns (deletion of employee) to the service providers shall be taken as proof to show that he was an employee at the time of death.
To get the above clarified, you will have to write to the EPF Organization and request an opportunity to be heard. Once the EPFO is satisfied, the dependents will receive the EDLI benefits. Therefore, please write to EPFO and ask for a personal hearing or an opportunity to present evidence to establish that he was an employee and the death occurred while in service.
From India, Kannur
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The above philosophy of putting a later date will not be applicable in the case of an employee leaving your organization and joining some other organization where PF is covered. Consider that the employee has worked in Company X till the 23rd and he joins company Y on the 24th. In this case, the last working day should be the exit date in company X because if you put the 24th as the exit date, he cannot put the 24th as the joining date in company Y. This is actually an issue that can cause future confusions. Therefore, ideally, in death cases, a date later than the date of death shall be put as the exit date whereas in the case of resignation, the date should be the last working day.
If the last month payout was zero, his contribution to EDLI should also be zero. Therefore, the ECR will not prove that his death happened while in service. You have to establish that he was hospitalized and since he had no leave to his credit, he was approved to take leave without pay and unfortunately, he passed away while undergoing treatment. Alternatively, if his death is not due to any illness but he had taken leave for some other reason, that can also be noted. But what is important is that there should be a leave letter and the death should occur during the period of leave. You should also produce the muster roll with his name appearing among the employees for the month of February (the month preceding the month of death) and March (the month of death). In case the employee was a member of ESI, the contribution history for February, March (with nil contribution), and April (with a note that he left/expired) shall be useful. In case covered by medical insurance, any communication/monthly returns (deletion of employee) to the service providers shall be taken as proof to show that he was an employee at the time of death.
To get the above clarified, you will have to write to the EPF Organization and request an opportunity to be heard. Once the EPFO is satisfied, the dependents will receive the EDLI benefits. Therefore, please write to EPFO and ask for a personal hearing or an opportunity to present evidence to establish that he was an employee and the death occurred while in service.
From India, Kannur
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(Fact Checked)-The user reply contains accurate information on the process to clarify and establish the deceased employee's status for EDLI benefits. It correctly advises on providing necessary evidence to the EPF Office for consideration. (1 Acknowledge point)
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I request the employer to check the March-19 ECR and the specific UAN number displayed there. If they have filed ECR with the total NCP of the specific UAN, then it might be grounds to seek a solution from EPFO. However, if the UAN was not included in the ECR filing, then EPFO has the right to reject the claim.
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(Fact Check Failed/Partial)-The user's reply is incorrect. According to the Employees' Provident Funds and Miscellaneous Provisions Act, 1952, EDLI benefit is not payable if the member was not in service at the time of death. The ECR filing status does not affect this rule.
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In case the records with the employer are correct up to date as mentioned by the kin of the deceased employee, they appeal to the PF office for reconsideration of the EDLI. The sum they offer as the benefit is usually Rs. 1,00,000. In case the employee is covered under ESIC, he should receive Rs. 10,000 as burial charges.
From India, Bangalore
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From India, Bangalore
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(Fact Check Failed/Partial)-The information provided about appealing to the PF office for reconsideration and the benefit amounts is incorrect. The EDLI benefit eligibility criteria differ. The correct process and eligibility criteria should be researched and followed.
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Depending upon the service the EDLI benefits shall be Rs 6 lakhs.
From India, Kannur
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From India, Kannur
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(Fact Check Failed/Partial)-The user reply is incorrect. As per the Employees' Deposit Linked Insurance Scheme (EDLI), the EDLI benefit is capped at Rs 6 lakhs only if the deceased employee was in service at the time of death.
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Dear Mr Raghunath, ESI "Funeral Benefit" has been enhanced to Rs15,000/-
From India, New Delhi
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From India, New Delhi
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The Central Board of Trustees has decided to increase the maximum limit for EDLI from Rs 6 lakhs to Rs 7 lakhs.
From India, Kannur
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From India, Kannur
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(Fact Check Failed/Partial)-The user reply is incorrect. The Central Board of Trustees increasing the maximum limit for EDLI from Rs 6 lakhs to Rs 7 lakhs doesn't address the issue of the deceased member's eligibility for EDLI claim. The key concern is whether the member's spouse will receive the EDLI claim due to the specific circumstances outlined in the original post.
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Death while in service letter for pf death claim.docx
PF Death case Composite Claim Form No 20,10D & 5IF.xls
CiteHR.AI
(Fact Check Failed/Partial)-The user's reply is partially correct. However, it is missing some key details regarding the EPF contribution period and eligibility for EDLI claim in case of death post-employment.