Context:
The Centre has decided to extend providing benefits of Employees’ Deposit Linked Insurance (EDLI) Scheme to all subscribers of Employees’ Provident Fund Organisation and their family members till further notice.
Relevance:
GS II: Government Policies and Interventions
Employees Deposit Linked Insurance (EDLI) Scheme
Introduction to EDLI
- The EDLI scheme was initiated in 1976 by the Government to extend social security benefits to private sector employees who traditionally did not receive such benefits from their employers.
- It is managed by the Employees Provident Fund Organisation (EPFO) and offers term life insurance coverage for its members.
Coverage and Integration
- The scheme encompasses all organizations under the Employees Provident Fund (EPF) and Miscellaneous Provisions Act, 1952.
- EDLI operates in conjunction with the EPF and the Employees’ Pension Scheme (EPS).
Benefits and Features
- Determination of Benefits: Benefits are calculated based on the employee’s last drawn salary.
- Payouts: Upon the death of an EPF member during their period of employment, the registered nominee receives a lump-sum payment.
- Nominee Consistency: The nominee for EDLI is the same as that registered under the EPF Scheme.
- Assured Benefits:
- Maximum Benefit: Up to Rs 7 lakh is payable to the nominee or legal heir if the member dies while in service.
- Minimum Benefit: At least Rs 2.5 lakh is payable if the deceased was continuously employed for 12 months prior to death.
- Cost: The insurance benefit is provided free of cost to PF/EPF account holders.
Contributions and Enrollment
- Employer Contribution: Employers contribute 0.5% of an employee’s monthly wages, up to a salary cap of Rs 15,000. There are no contributions required from employees.
- Auto-enrollment: All PF members are automatically enrolled in the EDLI scheme.
- Direct Credit: Benefits are directly transferred to the bank accounts of the nominees or legal heirs.
-Source: The Hindu
