Do you know what is EDLI Scheme and benefits you will get from it? Check details here
The Employees’ Deposit Linked Insurance Scheme (EDLI Scheme) is an insurance scheme which provides life insurance benefits to all employees who are members of the Employees’ Provident Funds Scheme.
The Employees’ Deposit Linked Insurance Scheme 1976 (EDLI Scheme) is an insurance scheme which provides life insurance benefits to all employees who are members of the Employees’ Provident Funds Scheme, 1952 or of PF Schemes exempted under Section 17 of the EPF & MP Act, 1952.
The EDLI Scheme is supported by a nominal contribution by the employers (@0.5% of monthly wages, upto the maximum wage limit of Rs 15000). No contribution is payable by the employees for availing insurance cover under this Scheme.
The benefits payable under EDLI Scheme have been enhanced by the Central Govt vide Gazette Notification No. GSR 299(E) dated 28.04.2021.
Benefits enhanced under the EDLI scheme:
- The maximum benefit payable to the eligible family members of the deceased employee under paragraph 22(3) of the EDLI Scheme was earlier Rs 6 lakh which has now been enhanced to Rs 7 lakh.
- The minimum assurance benefit of Rs 2.50 lakh payable under paragraph 22(3) of EDLI Scheme which was introduced with effect from 15.02.2018 for two years only, has been reinstated with effect from 15.02.2020. This is hoped to be of particular benefit to families of members who may have passed away due to the COVID-19 pandemic.
- Another beneficial provision which has been inserted in the EDLI Scheme is that w.e.f. 28.04.2021, the minimum benefit of Rs 2.50 lakh and maximum benefit of Rs 7 lakh will be provided to the eligible family members of those deceased members who have continued their scheme membership & employment for a continuous period of over twelve months, but may have switched their employer / establishment during the twelve months preceding their death. Earlier this benefit was available only where the deceased employee, being a member of the EDLI Scheme, was in employment of the same establishment for a continuous period of twelve months preceding the month in which he died. It is expected that this shall be of particular benefit to contract employees as well as other employees who change jobs frequently.
The beneficiaries in respect of deceased members who were not in continuous employment during the period of 12 months preceding the month in which they died shall continue to be paid benefit under paragraph 22(1) of the EDLI Scheme.