Employees Deposit Linked Insurance Scheme 1976

Employees Deposit Linked Insurance

Applicability: The Employees Deposit Linked Insurance Employee s Scheme 1976 is applicable to all establishments covered under the Employees Provident Fund and Miscellaneous Provisions Act 1952 Act, 1952. The scheme popularly called EDLI scheme. h

Employees Deposit Linked Insurance

Object: Providing protection to the family through life insurance. The scheme provides to the member employee a T Term I Insurance cover linked to his average balance in the PF account (deposit) over a period of last 12 months before p death.

Amount of Cover under EDLI

Amount of Term Cover: (i) If PF balance is up to Rs35000 Rs35000, then an equivalent amount of cover; but (ii) if PF balance is above Rs35000, then Rs35,000 + one fourth of the excess over Rs35,000; subject to a maximum cover of Rs60,000/-.

Contribution under EDLI Scheme

Contributions: (i). By the (i) B th employer only l l (ii) @0.50% of the salary up to Rs6,500 pm Salary = Basic + D.A. + Retaining Allowance + Cash l C h value of f d concessions. f food i Important: Salary above Rs6500 is not taken for payment of EDLI contributions. N contribution b the employee. No ib i by h l

Administrative Charges under EDLI Sc e e Scheme

Administrative Charges: By the employer only @ @0.01% of the salary up to Rs6500 pm. y p p Minimum charges Rs.2.

Numerical
Q1. Mr. Q1 Mr X is an employee having the average balance in PF account to Rs.85000/ dies. Rs 85000/- dies What amount will his nominee get?

Ans. Ans 47500

Q2. Mr. Q2 Mr Y is an employee having the average balance in PF account to Rs.150000 dies, Rs 150000 dies what amount will get his nominee?

Ans. Ans 60000

 Thanks