EDLI Scheme Benefits: If you are a worker in the private sector and an EPF subscriber, you are automatically entitled to the benefits of Employees’ Deposit Linked Insurance (EDLI) scheme. The 1976-launched scheme offers economic protection to the dependents of workers in the event of an untimely death. With recent trends enhancing the cover, EDLI guarantees the private sector workers and their dependents sufficient financial assistance during need.
Financial Support Offered by EDLI
In the EDLI scheme, at the demise of the EPF member while in service, his nominee or legal heir is eligible to receive a lump sum amount. The same in April 2021 ranged from Rs.2.5 lakh to Rs.7 lakh. This is offered based on the salary drawn at the time of death and years of service, assuring money for the family of the deceased individual.
Changes in the Recent EDLI Scheme
The EPFO Central Board of Trustees (CBT) headed by Union Labour Minister Mansukh Mandaviya approved major modifications to the EDLI scheme recently:
Minimum New Employee Amount – If the employee dies within the first year of employment, his/her family will be compensated with a minimum monetary support of Rs.50,000.
Continuous Service Consideration – Employees who switch employers and have less than two months’ break in between employments will continue to be eligible for EDLI benefits. This helps maintain continuous cover under insurance even in case of short breaks in employment.
Employer Contributions and Employee Eligibility
The employers contribute 0.5% of a worker’s basic wages, up to Rs.15,000 monthly, towards the EDLI scheme. The workers are not contributing but are being covered, as long as they are EPF members. In this manner, life insurance coverage for private sector employees does not entail any extra cost.
Claiming EDLI Benefits
In case of the death of an employee, his nominee or lawful heir can furnish documents such as the death certificate and EPF account details to the regional office of the EPFO with a view to enjoying the EDLI benefit. The process of submitting claims is streamlined so that the financial compensation is received by the bereaved family of the dead employee in due time.
Implication of EDLI for Private Sector Workers
The EDLI scheme is important to protect the families of private sector workers, especially those who are not covered by employer-sponsored life insurance. EDLI provides financial assistance when required and emphasizes that workers should know about their benefits. Day by day, EDLI improves and is an essential social security scheme for Indian private sector workers in millions.