Employees’ Provident Fund Organisation (EPFO) operates the Employees’ Deposit Linked Insurance (EDLI) Scheme. The scheme has certain salient features which the employees must be aware of.
The Employee Provident Fund (EPF) is a government-backed scheme and is deducted from the salaries of the employees. Both the employer and the employee need to contribute 10 percent of the employee’s basic salary each month into the fund.
Employees’ Provident Fund Organisation (EPFO) also operates the Employees’ Deposit Linked Insurance (EDLI) scheme. The scheme has certain salient features which the employees must be aware of.
EPFO on Thursday took to its Twitter handle to inform about the features of the EDLI Scheme. “Salient Features of Employees’s Deposit Linked Insurance (EDLI) Scheme, 1976,” it tweeted.
The salient features of the EDLI Scheme, 1976 as mentioned by EPFO are mentioned below:
1) It provides maximum assured benefit up to Rs 7 lakh to be paid to the nominee or legal heir of the EPF member if death occurs while in service.
2) The minimum assurance benefit is of Rs 25 lakh in case the deceased member was in continuous employment for 12 months prior to his or her death.
3) The minimal contribution by employer @0.5 per cent of employees’ monthly wages, up to wage ceiling of Rs 15,000.
4) No contribution has to be paid by the employees.
5) There will be auto enrolment of the PF members in the EDLI scheme.
6) The benefits will be directly credited to the bank account of the nominee or legal heir.
One can note that the nomination under the EPF scheme will be applicable for the EDLI scheme also. In order to claim the insurance benefit by the nominee or beneficiary in case of the member’s death, he or she has to fill the form 51F.
For more clarification and information you can visit the official website of EPFO at epfindia.gov.in.