Modi govt increases EDLI limit to Rs 7 lakh – View details

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The amount of the claim is linked to the average of the employee’s pension account balance and is payable to the employee’s agent.

The government issued a notice in the Gazette strengthening benefits under the Employee Deposit Insurance Scheme (EDLI). By a notification to the Official Gazette dated April 28, 2021, the maximum insurance benefit payable under the EDLI scheme was increased to Rs. 7 lakh from the previous maximum benefit of Rs. 6 lakh. Previously, in September 2015, EDLI benefits had increased from 3.6 lakh to Rs 6 lakh, which had been notified in June 2016.

The benefit payable under the EDLI scheme will be extended to beneficiaries when the deceased employee was a member of the Fund or a supplier fund exempted under section 17 of the EPF & MP Act for a continuous period of 12 months. preceding the month. during which he died, regardless of the change of establishment during the said period. The minimum insurance benefit payable under the EDLI scheme has been set at Rs. 2.50 lakh from 15.02.2020 (i.e. from the expiration date of said benefit).

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EDLI membership is automatically provided to people covered by EPF. The Employee Deposit Insurance Scheme, 1976 provides for insurance coverage to be paid to the employee’s agent upon the latter’s death during employment. The amount of the claim is linked to the average of the employee’s pension account balance and is payable to the employee’s agent. Since the EDLI scheme applies to all employees under the Employees Provident Funds and Miscellaneous Act 1952, there is no need to add the applicant separately.

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As an employee, it is not necessary to pay but only the employer must contribute. Up to the maximum salary cap of 15,000 rupees, the employer must pay 0.5 percent of the employee’s salary as well as administrative costs.

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