The EDLI Scheme, part of the EPF framework, offers life insurance to salaried EPF members. Recently, the minimum payout for members with less than one year of service has been fixed at ₹50,000. This ensures basic financial security for the families of newly employed workers.
Key Highlights
- Revised Minimum Benefit: Families of EPF members with less than one year of service will now get ₹50,000 under the EDLI scheme.
- Broader Coverage: Applies automatically to all EPF-covered employees, with no separate enrollment or premium required.
- Existing Structure:
- Minimum benefit (for service <1 year): ₹50,000
- Maximum benefit (linked to last drawn salary): up to ₹7 lakh
- Minimum benefit (for service <1 year): ₹50,000
- No Employee Contribution Required: The insurance benefit is fully funded by the employer’s contribution to the EPF.
- Automatic Protection: Coverage applies from the first day of employment under EPF registration, ensuring financial security for the worker’s family.
Conclusion
The revision in the EDLI minimum life insurance benefit to ₹50,000 marks a significant step toward enhancing social security for workers in India’s organized sector. It ensures that even employees with less than a year of service are not left without financial protection, reinforcing the government’s commitment to universal social welfare and financial resilience for every worker.
FAQs
1. What is the Employee Deposit Linked Insurance (EDLI) Scheme?
Ans: The EDLI Scheme is a life insurance cover provided to all employees who are members of the Employees’ Provident Fund (EPF).
2. What is the new minimum life insurance benefit?
Ans: The minimum life insurance payout is now ₹50,000 for EPF members who have less than one year of continuous service at the time of death.
3. What is the maximum amount payable under EDLI?
Ans: The maximum life insurance benefit remains ₹7 lakh, depending on the employee’s last drawn salary and period of contribution.
4. Who is eligible for this benefit?
Ans: All employees who are covered under the EPF Act, 1952 and have an active EPF account are automatically eligible for the EDLI benefit.
5. Does the employee contribute to the EDLI Scheme?
Ans: No. The employer contributes on behalf of the employee, and the insurance cover is automatically included as part of the EPF benefits.
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