The purpose of the EDLI scheme, started by EPFO in 1976, was to provide financial help to the family of an EPFO member if he dies due to any reason.
Employees Deposit Linked Insurance is an insurance scheme run by EPFO, which is run for every employee registered with EPFO. Under this scheme, an insurance cover of up to 7 lakhs is given. This scheme works with the combination of EPF and EPS. It is important for everyone to know about this, because if an employee dies during the job, then his nominee can get financial help of up to 7 lakhs under this scheme. Let’s know about Employees Deposit Linked Insurance.
Contribution is made in EDLI scheme every month
The purpose of the EDLI scheme, started by EPFO in 1976, was to provide financial help to the family of an EPFO member if he dies due to any reason. The sum insured under EDLI depends on the salary of the last 12 months. Every month, 8.33% of the PF amount deposited from the employee’s salary goes to EPS, 3.67% to EPF and 0.5% to EDLI scheme. Generally people know about PF money and pension scheme, but EDLI scheme is not known.
Important things related to EDLI
- The nominee or legal heir or family member of the Employees’ Provident Fund member gets a maximum insurance benefit of Rs 7 lakh in case of death of the employee while in service.
- If the EPFO member has been working continuously for 12 months, then after the death of the employee, the nominee will get a benefit of at least 2.5 lakhs.
- The EPFO member is covered by the EDLI scheme only as long as he/she is employed.
- After leaving the job, his family / heir / nominee cannot claim it.
- The contribution of 0.5% in EDLI is made on behalf of the company, it is not deducted from the salary of the employee. In Employees’ Deposit Linked Insurance, the nomination of employees happens naturally.
- Keeping in mind that the nominee does not face any problem, the sum assured of the insurance is transferred directly to his account.
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