June 12, 2021 04:43 PM
The government has issued a gazette notification enhancing the benefit under the Employees’ Deposit Linked Insurance Scheme (EDLI). Through a gazette notification dated April 28, 2021, the maximum assurance benefit payable in the EDLI limit to Rs 7 lakh Scheme has been enhanced to Rs. 7 lakh from the earlier maximum benefit of Rs.6 lakh.
Earlier, in September 2015 the benefits under the EDLI scheme was increased from Rs 3.6 lakh to Rs 6 lakh, which got notified in June 2016.
The benefit payable under EDLI Scheme shall be extended to such beneficiaries where the deceased employee was a member of the Fund or a provider fund exempted under Section 17 of the EPF & MP Act aid was in employment for a continuous period of 12 months preceding the month in which he died, irrespective of change of establishment during the said period. The minimum assurance benefit payable under the EDLI Scheme has been fixed as Rs.2.50 lakh effective 15.02.2020.
EDLI limit to Rs 7 lakh: The membership of EDLI is automatically provided to those covered in EPF. The Employees’ Deposit-Linked Insurance Scheme, 1976 provides an insurance cover to be paid to the employee’s nominee on the death of the employee during employment.
The claim amount is linked to the average of the provident fund account balance of an employee and is payable to the nominee of the employee. As the EDLI scheme applies to all employees under the Employees’ Provident Funds and Miscellaneous Provisions Act, 1952, there is no need to add the nominee separately.
As an employee, one need not pay but only the employer has to contribute. Up to the maximum wage ceiling of Rs 15,000, the employer has to contribute 0.5 percent of the employee’s wages along with administrative charges.