Employees' Deposit Linked Insurance (EDLI) Scheme: Five salient features to know about
1 min read . Updated: 15 Mar 2023, 01:59 PM IST
Premium- The amount of maximum insurance benefit has been increased from ₹ 6 lakh to ₹ 7 lakh
Under the EPFO’s Employees’ Deposit Linked Insurance Scheme,(EDLI) all surviving dependent family members of the members of this scheme are eligible to avail of benefits of EDLI in case of the death in a harness of the member.
The purpose of the Employees’ Deposit Linked Insurance Scheme 1976 (‘EDLI Scheme’) is to provide life insurance benefits to the employees of the establishments covered under the Employees’ Provident Funds and Miscellaneous Provisions Act 1952 (‘EPF Act’).
An assurance benefit is provided to eligible family members so as to provide financial assistance in the event of an employee’s unfortunate death while in service.
Salient features of the EDLI scheme
Maximum assured benefit up to Rs. 7 lakh paid to the nominee or legal heir of EPF member, if death occurs while in service.
Minimum assurance benefit of ₹25 lakh, if deceased member was in continuous employment for 12 months prior to his/her death.
To benefit families of contractual/ casual workers, the condition of continuous employment in only one establishment has been liberalized, with benefit being made available to families of even those employees who may have changed jobs in the last 12 months preceding his death.
Minimal contribution by employer @ 0.5% of employees' monthly wages, up to wage ceiling of ₹15,000.
No contribution paid by employee.
Auto-enrollment of PF members in EDLI Scheme.
Benefit directly credited to bank account of nominee or legal heir.
“The EDLI Scheme applies to the employees of all factories and other establishments to which the EPF Act applies, unless an exemption is granted to the factory or establishment under the EPF Act. Upon death of an employee while in service, a lump sum insurance amount is payable to the nominee or the family members of such deceased employee," said Anshul Prakash, Partner, Khaitan & Co.