Following are the points on which I need clarification:
1) How much duration of service is required for eligibility for EDLI benefits.
2) If an employee dies in the 11th year of service, can the nominee withdraw 100% of the pension amount?
3) If an employee resigns in the 11th year of his service, is he eligible to withdraw 100% of the pension amount?
4) Is any nominee eligible for both pensions simultaneously (ESI & EPF)?
5) If an employee dies while off duty, is the nominee eligible for ESI & EDLI benefits?
Please clear my doubts.
From India, Korba
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11) How much duration of service is required for eligibility for EDLI benefits.
2) If an employee dies in the 11th year of service, can the nominee withdraw 100% of the pension amount?
3) If an employee resigns in the 11th year of his service, is he eligible to withdraw 100% of the pension amount?
4) Is any nominee eligible for both pensions simultaneously (ESI & EPF)?
5) If an employee dies while off duty, is the nominee eligible for ESI & EDLI benefits?
Please clear my doubts.
From India, Korba
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The queries are answered below at seriatim:
1. The EDLI is a part of the PF package and the coverage is automatic with the PF membership. The coverage is not dependent on the length of service of the employee, it is a life insurance, contributed entirely by the employer and is redeemable in the event of death of the employee while in service.
2. The nominee is eligible to get the EDLI sum assured, the maximum assurance benefit under the ‘Employees’ Deposit Linked Insurance’ (EDLI) scheme is increased to Rs 7 lakhs since 28 April 2021 from earlier limit of Rs 6 lakh. The pension is payable under the EPS
3) In EDLI no pension is payable, in EPS the employee or nominee cannot withdraw 100% of pension amount. Pension will be a regular monthly payment.
4) No pension is payable under the ESI Scheme. It is permanent disability benefit or dependent benefit and is entirely separate from the pension under the EPF Scheme//EPS.
5) ESI & EPF Schemes are totally different in scope and application, the eligibility in one doesn't create any effect on the applicability of the other. They are not mutually exclusive.
From India, Mumbai
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1. The EDLI is a part of the PF package and the coverage is automatic with the PF membership. The coverage is not dependent on the length of service of the employee, it is a life insurance, contributed entirely by the employer and is redeemable in the event of death of the employee while in service.
2. The nominee is eligible to get the EDLI sum assured, the maximum assurance benefit under the ‘Employees’ Deposit Linked Insurance’ (EDLI) scheme is increased to Rs 7 lakhs since 28 April 2021 from earlier limit of Rs 6 lakh. The pension is payable under the EPS
3) In EDLI no pension is payable, in EPS the employee or nominee cannot withdraw 100% of pension amount. Pension will be a regular monthly payment.
4) No pension is payable under the ESI Scheme. It is permanent disability benefit or dependent benefit and is entirely separate from the pension under the EPF Scheme//EPS.
5) ESI & EPF Schemes are totally different in scope and application, the eligibility in one doesn't create any effect on the applicability of the other. They are not mutually exclusive.
From India, Mumbai
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Overview of Employee Deposit Linked Insurance (EDLI) Scheme
EDLI is an insurance scheme offered by the Employees' Provident Fund Organization (EPFO) to EPF (Employees' Provident Fund) members. It provides financial security to the family of an EPF member in case of the death of an EPF member while on duty.
Eligibility criteria for EDLI benefits
To qualify for EDLI benefits:
- Active member of EPF: The deceased employee must be an active member of EPF at the time of death.
- Minimum Service Requirement: Unlike the pension scheme, there is no minimum length of service required to qualify for EDLI. Even if an employee worked for a short period, his nominee or legal heir is entitled to claim the benefit.
- Covered under EPF: The employee has to contribute to EPF at the time of death.
EDLI Advantage: Points
Amount of Benefits:
Benefits are calculated based on the employee's monthly salary (basic + DA).
The maximum premium is ₹7 lakh (revised from ₹6 lakh in 2021).
Who can apply:
A discharged employee or legal heir of a deceased person may file an application.
Documents Required:
- Death Certificate of Employee
- EPF Account Information
- Written proof of identity
Additional Information:
Linked to EPF contribution: If the employer contributes to EPF, the EDLI benefit is paid automatically.
No separate premiums: EDLI is covered by the employer, and employees do not have to pay separate premiums.
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EDLI is an insurance scheme offered by the Employees' Provident Fund Organization (EPFO) to EPF (Employees' Provident Fund) members. It provides financial security to the family of an EPF member in case of the death of an EPF member while on duty.
Eligibility criteria for EDLI benefits
To qualify for EDLI benefits:
- Active member of EPF: The deceased employee must be an active member of EPF at the time of death.
- Minimum Service Requirement: Unlike the pension scheme, there is no minimum length of service required to qualify for EDLI. Even if an employee worked for a short period, his nominee or legal heir is entitled to claim the benefit.
- Covered under EPF: The employee has to contribute to EPF at the time of death.
EDLI Advantage: Points
Amount of Benefits:
Benefits are calculated based on the employee's monthly salary (basic + DA).
The maximum premium is ₹7 lakh (revised from ₹6 lakh in 2021).
Who can apply:
A discharged employee or legal heir of a deceased person may file an application.
Documents Required:
- Death Certificate of Employee
- EPF Account Information
- Written proof of identity
Additional Information:
Linked to EPF contribution: If the employer contributes to EPF, the EDLI benefit is paid automatically.
No separate premiums: EDLI is covered by the employer, and employees do not have to pay separate premiums.
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