In this modern world, it is important for every individual to have proper insurance cover due to the increasing stress and pollution. So, EDLI (Employees Deposit Linked Insurance Scheme) was brought in to the picture by the government in 1976 to safeguard the interest of private organization employees.
EDLI full form is (Employees Deposit Linked Insurance. EDLI falls under the Employees Provident Fund Organization (EPFO) and provides life insurance cover for the private sector employees in case of any miss-happening. In addition to this every employee of the organization that falls under the Employees Provident Fund and Miscellaneous Provisions Act, 1952 gets automatically enrolled for EDLI, if an enterprise adopts it.
Under EDLI the nominee gets the lump-sum amount in case if the insured person dies during his/her service period. So, through this, we can conclude that the main motive behind the introduction of EDLI is to provide financial assistance to the family member of the deceased. However, this lump-sum amount depends wholly upon the last withdrawn salary of the deceased employee.
Here are the major features of the EDLI:
Note: For the purpose of basic salary EDLIcalculation formula 2022 for basic salary shall include dearness allowance.
In the EDLI calculation, the nominee, family member or the legal heir will get the lump-sum amount of 30 times of the 12 months basic salary (including dearness allowance) of the deceased employee.
Now let us understand this with an example:
Here is the contribution chart of all the three schemes under EDLI EPFO:
|EPFO Scheme||Employee’s Contribution||Employer’s Contribution|
|EPF||12 % of Basic + DA||3.67% of Basic + Dearness Allowance|
|EPS||N/A||8.33 % of Basic + Dearness Allowance|
|EDLI||N/A||0.5% (subject to a maximum of ₹ 75)|
Here is the procedure to claim EDLI:
Here is the list of documents that are required for EDLI:
If the deceased person is employed under that organization in which EPF Scheme 1952 does not apply in that case the employer shall mention the last 12 months PF details in the certificate and shall send an attested copy of nomination form of that deceased person.
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