All you should know about EDLI
What is Employee Deposit Linked Insurance Scheme (EDLI)?
The Employees Deposit Linked Insurance Scheme or EDLI is an insurance cover provided by the EPFO (Employees Provident Fund Organisation) for private sector salaried employees who are members of EPFO. The EDLI scheme was launched in 1976. The registered nominee receives a lump-sum payment in the event of the death of the person insured (employee) during the period of the service. It is social security which is a part of the Employee Provident Fund itself.
Under this scheme, after the death of the member, the nominee receives a maximum of Rs.7 lakh and a minimum of Rs.25 lakh as assistance by EPFO. In this scheme, 0.5% of your PF wages are paid by the establishment. No separate registration is required to become a member of this scheme as when the registration of the member is done by the establishment in EPFO, at the same time they become eligible for this scheme.
It is calculated as follows:-
12 months average salary (Basic+V.D.A) of the member subject to a maximum of Rs.15,000 is taken for calculation and paid up to 35 times of the same. But the member must be a member for at least 12 months in the past, otherwise, this amount may be less. In addition, 50% of the amount available in the member’s PF account is paid, which cannot exceed Rs.1,75,000.
To take benefit of this facility, Form No. 5 IF is filled by the nominee and sent to EPFO. In this way, as per the rules of EPFO, the nominee of the registered member gets the benefit of this facility.
