What is Employee Deposit Linked Insurance (EDLI) Scheme?
What is EDLI Scheme? What are the EDLI Scheme Benefits? What is EDLI contribution in PF? I recently came to know about this EDLI Scheme that it is related to your PF account. Can you please explain me in detail.
The EDLI (Employees Deposit Linked Insurance) Scheme is clubbed to linked to the EPF plus EPS scheme. Many employees / staff members which register to the EPF scheme tend to be immediately enrolled in EDLI scheme automatically. As the employee you cannot pick what of these several schemes but the schemes are transferrable when the employee / staff member changes jobs. Efforts will continue in identical account through the new employer. Employees Deposit Linked Insurance Scheme is a social protection scheme. That it offers necessary coverage to the family members of that employees.
Under the EDLI (Employees Deposit Linked Insurance) Scheme, the nominee of employee can get a max claim upto 30 times of the final salary drawn. Each maximum wage for the this employee is actually capped in Rs.15,000/-. An extra bonus of around Rs.150,000 normally is provided. So, each maximum claim under the EDLI scheme will come out to be Rs.600,000 considering maximum capped salary of Rs.15,000/-
Calculation of EDLI (Employees Deposit Linked Insurance) Scheme:
(Rs.15,000 * 30 times) + Rs.150,000 = Rs.600,000/-
At India, people are perhaps not much aware of the insurance coverage planning then pension preparing. If not forced, seldom one worker would choose a insurance coverage protect. Consequently, for the financial health for the people at-large, the government introduced public protection schemes. Their employee provident fund, Employee deposit linked insurance scheme, Employee pension scheme are among such imitative schemes by the Indian government.
What is the contributions made by employee to this EDLI scheme? Does this is paid from the 12% contribution made for EPF account?
Hi Jaya, this is an answer for your question. Hope below details will clear all your doubts. Do share us your feedback, if this information was useful to you!
Contributions to the EDLI scheme:
While the employee enjoys the benefits of coverage in EDLI (Employees Deposit Linked Insurance) scheme, a person does not contribute to that it directly. Contributions are built by just their employer.
1. Contributions have always been complete according to formula of the fixed percentage of DA and income.
2. EPF / Employee’s Provident Fund contribution through employer: 12% minus EPS share.
3. EPS / Employee’s Pension Scheme contribution with employer: 8.33% (subject to your maximum concerning Rs.1,250).
4. EPF / Employee’s Provident Fund share simply by employee: 12%.
5. EPS / Employee’s Pension Scheme participation simply by employee: none.
6. EDLI / Employees Deposit Linked Insurance Scheme contribution through employee: none.
7. EDLI / Employees Deposit Linked Insurance Scheme contribution with employer: 0.55% (subject to the maximum concerning Rs.75)