The Employees’ Provident Fund Organisation (EPFO) gives EPF members a helpful but often missed benefit: the Employee Deposit Linked Insurance (EDLI) Scheme. This plan offers life insurance if an employee sadly dies while working, giving their family money. There’s talk about raising the maximum insurance to Rs 7 lakh. Let’s learn more about this plan.
What is the EDLI Scheme?
EDLI is life insurance linked to your EPF account. It costs employees nothing extra. Employers pay into this plan as part of their EPF duties. All EPF members whose workplaces follow EPF rules can join. If an employee dies, their family gets a payment.
The Talk About Rs 7 Lakh Insurance:
The most insurance EDLI might pay is going up from Rs 6 lakh to Rs 7 lakh. This change aims to give families of EPF members more money if needed. This higher amount usually applies to workers who earn Rs 15,000 or more each month, as the insurance amount is based on salary and how long they worked.
How the Insurance Amount is Figured Out:
The insurance money isn’t the same for everyone. It’s based on the average salary from the last year of work. The insurance can be up to 30 times that average monthly pay, but it can’t be more than Rs 7 lakh. For example, if someone’s average pay was Rs 20,000, the insurance would be Rs 6 lakh (30 x 20,000). If their pay was higher, it could reach Rs 7 lakh.
Who Can Get the Rs 7 Lakh Insurance?
To possibly get the higher EDLI amount, members generally need to:
- Be active EPF members with regular payments going in.
- Earn up to or over Rs 15,000 a month (how it’s counted changes slightly).
- Be currently working for a company that follows EPF rules (coverage stops if they quit or take out all their EPF money).
Why the EDLI Scheme is Good:
- No Extra Cost: Employees don’t have to pay anything extra for this insurance.
- Money for Family: It gives important financial help to the worker’s family if they pass away.
- Lots of People Covered: It’s like a group plan, so many workers are covered together.
In Conclusion:
The possible increase to Rs 7 lakh with the EPFO’s EDLI scheme means better security for workers and their families. By connecting the insurance to salary, the plan tries to protect those who earn more, while still having a limit of Rs 7 lakh. It’s important for EPF members to know how this works so they can understand this valuable benefit.
