Now EPF offers Life Insurance of Rs.2.5 lakh to Rs.6 lakh!! Earlier the limit of minimum insurance benefit was Rs.1.5 lakh and the maximum was Rs.6 lakh. Many of the salaried unaware this part that their EPF also offers insurance coverage of up to Rs.6 lakh.
Earlier I wrote a post when EPFO increased the maximum limit from the existing Rs.3.6 lakh to Rs.6 lakh (Refer the post “Do you know EPF offers up to Rs.6 lakh of Life Insurance (EDLI)?“.
Now as I said above, EPFO increased the minimum limit also from the existing Rs.1.5 lakh to Rs.2.5 lakh.
This Life Insurance which offered by EPFO is called EDLI (Employees’ Deposit Linked Insurance Scheme).
To understand about this, let us go deeper and see how you and the employer EPF contribution split. I tried to show the same in below image for your easy understanding.
From the above image, you noticed that the premium and management charges will be payable by your employer. But do note that the maximum limit set for this premium payment is 0.5% of Rs.15,000 (Whatever may be your actual EPF contribution from an employer or whatever may be your salary).
Note:-Salary for this purpose is Basic+DA only.
Under new changes, now EPF offers Life Insurance of Rs.2.5 lakh to Rs.6 lakh. As I pointed above, the employee will not contribute to EDLI. Only your employer will contribute to it. It is 0.5% of Rs.15,000 or Rs.75 per month to the maximum (based on your actual Basic+DA). The maximum amount payable by the employer is Rs.75. Refer the below image in that regard of notification.
The average monthly salary (Basic+DA) drawn (subject to a maximum of Rs 15,000), during the last 12 months preceding the month in which the employee dies, is first multiplied by 30 times. This is added to 50% of the average balance in the account of the deceased in the provident fund during the preceding 12 months or during the period of his membership, whichever is less.
The minimum payable will now be Rs 2.5 lakh while the maximum will be Rs 6 lakh.
Let us assume that Mr.A’s salary (Basic+DA) at the time of death is Rs.10,000. Then assume his last 12 months average salary was Rs.10,000. Then we have to multiply this by 30. This will be Rs.3,00,000.
Now we have to add 50% of the average balance in the account of Mr.A during the preceding 12 months. Assume his EPF balance of last 12 months is Rs.1 lakh. Then 50% of this is Rs.50,000.
So in total, he will receive Rs.3,00,000+Rs.50,000=Rs.3,50,000.
Hope this is the good news for those who are the member of EPF.
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Hi Sir, From where we will get a document for EDLI
Dear Kiran,
From EPFO website or regional offices.
SIR, GOOD AFTER NOON
My brother had expired on 06.09.2019
dept.joined in (01.05.2015
salary received Rs.20598
how to calculate receving amount
please
which amount received by hand please help me sir
Dear Lakshmi,
Please take a pain to read the above post.
Hi basavaraj,
My brother had expired recently in service ( 9 months doing job) , only he have 9 months PF and basic salary is 15000/
recently We got EDLI amount just 8000 rs . Actually We supposed to get 30 *15000 =450000 right.
Could you please help me to understand how they calculated.
SIR, GOOD AFTER NOON
My brother had expired recently in service (01.05.2015
salary received Rs.20598
who to calculate receving amount
please
Dear Lakshmi,
Please refer the above post.
Sir, Is this EDIL scheme applicable to post retiree ? If yes, what is time limit of filing Insurance claim by the legal heir after the retiree's death. All other 'after retirement dues' settled.
Dear Shyam,
It is for those who are working but not for retirees.
Dear Deepthi,
Refer above post properly.
Is it mandatory for the employer to pay the insurance premium. How can we know ?
Dear Subramanian,
Yes, it is part of their EPF contribution.
Sir my friend was working in canara bank he expired on Feb 2016 can his family claim the life insurance policy of epfo
Dear Hemant,
Yes, if Canara Bank providing EPF facility.
Dear Sir,
is this EDLI is applicable from a year 2008 or after that
Devendra,
EDLI was there even before 2008 also.
Hi Sir,
My cousin brother suicide attempted due to some personal reasons, now he is working regularly on the his job. now can u explain claim eligibility.
Dear Raghu,
Attempt will not be covered.
Hi sir
My father was worked June 2012 to April 2018,
After join another company on may 2018 and he passed away October 2018 . How much money expect to the edli amount.
Dear Nagaraju,
Refer the above post properly or approach the EPFO.
Sir mere bade Bhai accident me death ho gyi thi 16/03/2019 ko
Unki salry 11000 thi isme kya benifit milsakt he or kitna milega
Dear Pratap,
Hard to say. Hence, better to approach the regional EPFO.
how to apply ?my employees passed away in august-19 kindly revert how documentation process will submitted in EPFO For EDLE
Dear Vijeta,
Approach the regional EPFO.