EDLI benefit increased from Rs 3.6 lakh to Rs 6 lakh

As per the Employees Deposit Linked Insurance (Amendment) Scheme, 2018 published in the Gazette dated 15th February 2018, the Central Government has amended the Employees’ Deposit Linked Insurance (EDLI)Scheme, 1976. EDLI provides for a lump sum payment to the insured’s nominated beneficiary in case of death due to natural cause, illness or accident. The main objective of this Scheme is to provide some financial security to the family members after the death of an insured employee.

By this Notification Government has amended Paragraph 22(1)(3) of the Employees Deposit Linked Insurance Scheme 1976 and increased the assurance benefits which shall not be less than 250000 rupees and shall not exceed 6 lakhs. Previously the maximum amount was 3.6 lakh.

A formula for calculating the amount is thus added by this amendment for bringing uniformity in the application of the Amendment-

Average monthly wage (not exceeding 15000 Rupees) multiplied by 30.
Plus, fifty percent of the average balance in the account of the deceased in the Fund or of a provident fund exempted under section 17 of the Act or under paragraph 27 or 27A of the Employees’ Provident Funds Scheme, 1952, as the case may be.

b. is subject to a ceiling of one lakh and fifty thousand rupees (assuming in this example, the average balance is above 200000), for the purpose of calculation, it will be considered as 1,50,000 Rupees.

So, for example, if the average monthly wage of the employee is 10,000, as per the above formula the EDLI amount will be (10,000*30)+1,50000 = 450000 Rupees.

As per the amendment, the maximum EDLI amount shall be (15000*30)+150000= 600000 Rupees. Apart from the maximum amount, that no matter the sum amounting after calculation, assurance benefit of minimum 2,50,000 is guaranteed.


A formula for calculating the amount is thus added by this amendment for bringing uniformity in the application of the Amendment-

Average monthly wage (not exceeding Rs. 15,000) multiplied by 30.
Plus, fifty percent of the average balance in the account of the deceased in the Fund or of a provident fund exempted under section 17 of the Act or under paragraph 27 or 27A of the Employees’ Provident Funds Scheme, 1952, as the case may be.

Point number 2 is subject to a ceiling of Rs. 1.50 lakh (assuming in this example, the average balance is above Rs. 2 lakh, for the purpose of calculation, it will be considered as Rs. 1.5 Lakh).

So, for example, if the average monthly wage of the employee is Rs. 10,000, and 50% of the average balance in PF account is Rs.1.50 Lakh. As per the above formula the EDLI amount will be: (10,000*30) +1,50000 = Rs. 4,50,000.

The said changes shall be in force for a period of two years from 15th February 2018, i.e. upto 15th February 2020. As all members of EPF are automatically covered under EDLI, one need not separately add nominee for EDLI scheme. In case of death of the insured person, the nominee of the deceased employee can claim the insured amount which is Rs 2.5 lakh in minimum and the maximum is Rs 6 lakh. In absence of nominee, the legal heir may claim.





EDLI benefit increased from Rs 3.6 lakh to Rs 6 lakh

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