The Central Government has decided to extend the benefit of the Employees Deposit Linked Insurance (EDLI) Scheme to all the subscribers of the Employees’ Provident Fund Organisation and their family members till further notice.
Introduction to EDLI Scheme
- Introduction: The EDLI scheme was introduced by the government in 1976.
- Objective: The scheme was created to provide social security benefits to those private sector employees who are not provided life insurance cover by the employer.
- Management: The EDLI scheme is managed and administered by the Employees’ Provident Fund Organisation (EPFO).
- Membership: The scheme covers all organisations that are registered under the Employees’ Provident Fund (EPF) and Miscellaneous Provisions Act, 1952.
- Relationship: The scheme works in conjunction with the Employees’ Provident Fund (EPF) and the Employees’ Pension Scheme (EPS).
Key Features of EDLI Scheme
- Insurance Benefit: Under the EDLI scheme, if the employee dies during the service period, an insurance benefit of up to Rs 7 lakh is paid as a lump sum to the nominee.
- Minimum Benefit: If the deceased member was in continuous employment for 12 months, the minimum assured benefit is Rs 2.5 lakh.
- Free Cover: This insurance cover is free for PF/EPF account holders, i.e. the employee does not have to make any contribution.
- Employer Contribution: Employers contribute 0.5% of the employee’s monthly salary, with a maximum salary limit of Rs 15,000.
- Auto-enrolment: EPF members are automatically enrolled in the EDLI scheme.
- Payment: The insurance benefit is directly credited to the bank account of the nominee or legal heir.
Employees’ Provident Fund Organisation (EPFO)
- Establishment: EPFO is a statutory body under the Employees’ Provident Fund and Miscellaneous Act, 1952.
- Administrative Control: It comes under the Union Ministry of Labour and Employment.
- Management: It is managed by the Central Board of Trustees, Employees’ Provident Fund, which comprises representatives of the central and state governments, employers and employees.
- Responsibilities: It manages provident funds, pension and insurance schemes for organised sector employees in India.