EDLI Scheme: Maximum assured benefit up to Rs 7 lakh paid to nominee or legal heir of EPF member, if death occurs while in a service.
New Delhi: As India continues to battle against the ongoing Covid-19 pandemic, the Central Government has announced measures to help families who have lost the earning member due to Covid. One of the key measures and an important one for Employee Provident Fund (EPF) members is Employees Deposit Linked Insurance Scheme or EDLI under Employees’ Provident Fund Organization (EPFO). The EDLI scheme, apart from all other beneficiaries, will help the families of employees who have lost their lives due to highly contagious Coronavirus.
Under the EPFO’s Employees’ Deposit Linked Insurance Scheme all surviving dependent family members of the members of this scheme are eligible to avail benefits of EDLI in case of death in
harness of the member. Ministry of Labour & Employment issued a notification giving details of the EDLI scheme
- Amount of maximum benefit has been increased from 6 lakhs to 7 lakhs to the family members of deceased employee.
- Minimum assurance benefit of Rs 2.5 lakh to eligible family members of deceased employees who was a member for a continuous period of 12 months in one or more establishments preceding his death in place of existing provision of continuous employment in the same establishment for 12 months. It will benefit contractual/casual labourers were losing out on benefits due to condition of continuous one year in one establishment.
- Restoration of provision of minimum 2.5 lakh compensation retrospectively, i.e., from February 15, 2020
- In coming 3 years, the actuary has estimated that eligible family members will get an additional benefit of Rs. 2185 crore from EDLI fund in the years 2021-22 to 2023-24.
- Number of claims on account of death under the scheme has been estimated to be about 50,000 families per year including increase in claims taking into account estimated death of about
10,000 workers, which may occur due to Covid. - These welfare measures will provide the much needed support to the families of workers who have died due to the COVID-19 disease and will protect them from financial hardships in these
challenging times of pandemic, the Ministry of Labour & Employment said in a statement. - Salient Features of Employees’s Deposit Linked Insurance (EDLI) Scheme, 1976, according to details provided by EPFO
- Maximum assured benefit up to Rs 7 lakh paid to nominee or legal heir of EPF member, if death occurs while in a service.
- Minimum assurance benefit of Rs 2.5 lakh, if deceased member was in continuous employment for 12 months prior to his or her death.
- Minimal contribution employer at 0.5 per cent of employees’ monthly wages, up to wage ceiling of Rs 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.
