Tag: EDLI SCHEME 1976

Benefit of Rs 50,000 will be paid, big news for EPFO members

The Employees’ Provident Fund Organization (EPFO) has rolled out some significant updates to the Employees’ Deposit Linked Insurance (EDLI) scheme. These changes were greenlit during the 237th meeting of the Central Board of Trustees (CBT), which was led by Union Labor Minister Mansukh Mandaviya.

So, what’s new?

The ministry announced that the CBT has approved a minimum death benefit for those who pass away within their first year of service. If an EPF member dies before completing a year of continuous service, their beneficiaries will receive a minimum life insurance payout of Rs 50,000.

Coverage even without contributions

Additionally, the CBT has approved benefits for members who die while still in service but after a period without contributions. Previously, if a member was considered out of service, they wouldn’t qualify for EDLI benefits. Now, if a member dies within six months of their last contribution and their name is still on the rolls, they will be eligible for EDLI benefits. This change is expected to help over 14,000 cases of such deaths annually.

Support even with job gaps

The CBT has also given the green light to a proposal that allows for service continuity under the scheme. Previously, if there was a gap of just one or two days (like weekends or holidays) between jobs, members would be denied the minimum EDLI benefit of Rs 2.5 lakh and a maximum of Rs 7 lakh because they hadn’t met the one-year continuous service requirement.

With the new changes, a break of up to two months between jobs will now count as continuous service, making people eligible for EDLI benefits. This update is likely to help over 1,000 families dealing with service-related deaths each year. Plus, it’s projected that these amendments will lead to more than 20,000 cases of service-related deaths receiving increased benefits under EDLI annually.

The Employees’ Provident Fund (EPF) withdrawal process has become significantly streamlined, especially with the online options. Here’s a breakdown of the general steps, keeping in mind that the EPFO is also working towards incorporating UPI based withdrawals.

Key Requirements Before Starting:

Online EPF Withdrawal Process:

  1. Log in to the EPFO Portal:
    • Visit the official EPFO member e-SEWA portal.
    • Log in using your UAN and password.
  2. Verify KYC Details:
    • Ensure all your KYC details (Aadhaar, PAN, and bank account) are verified under the “Manage” tab.
  3. Go to Online Services:
    • Click on the “Online Services” tab.
    • Select “Claim (Form-31, 19, 10C & 10D)” from the drop-down menu.
  4. Verify Bank Account:
    • Enter your bank account number and click “Verify.
    • Click “Yes” to confirm the undertaking certificate.
  5. Proceed for Online Claim:
    • Click on “Proceed for Online Claim.”
  6. Select Withdrawal Type:
    • Choose the appropriate type of withdrawal (e.g., PF Advance (Form 31), full withdrawal).
    • Provide the reason for the withdrawal and the required amount.
  7. Submit the Claim:
  8. Track Claim Status:

Important Considerations:

  • Withdrawal Conditions: EPF withdrawals are subject to specific conditions, such as retirement, unemployment, or certain emergencies.
  • UPI integration: The EPFO is in the process of implementing UPI based withdrawels, which would greatly speed up fund transfers. When this is fully implemented, the process will change somewhat.
  • Forms: The forms mentioned (Form-31, 19, 10C, and 10D) are used for various types of withdrawals and pension claims.

It’s always recommended to refer to the official EPFO website for the most up-to-date information and guidelines.

Salient Features of Employees’ Deposit Linked Insurance (EDLI) Scheme, 1976

Salient Features of Employees’ Deposit Linked Insurance (EDLI) Scheme, 1976.

  • Maximum assured benefit up to Rs. 7 lakh paid to nominee or legal heir of EPF member, if death occurs while in service.
  • Minimum assurance benefit of Rs 2.5 lakh, if deceased member was in continuous employment for 12 months prior to his/her death.
  • Minimal contribution by employer @ 0.5% of employees’ monthly wages, up to wage ceiling of Rs. 15,000.
  • No contribution paid by employee.
  • Auto enrollment of PF members in EDLI Scheme.
  • Benefit directly credited to bank account of nominee or legal heir.

EDLI Calculation

The insurance amount that the heirs of a deceased member get is calculated as 35 times the average monthly salary in the last 12 months of employment.

The maximum average monthly salary of an employee is capped at Rs. 15,000

So, 35 times the salary comes to be around to be 35 x ₹ 15,000 = Rs. 5,25,000

A bonus amount of up to Rs.1,75,000 is also paid to the claimant under this scheme

Thus, the total amount payable under this scheme to the beneficiary is Rs. 7,00,000

EDLI Form 5 IF

EDLI Form 5 IF is filled by the nominees, heirs or family members of the member after his death to claim the insurance amount under EDLI Scheme. The EDLI claim form has to be filled separately by each claimant. In case of a minor claimant, the guardian has to fill the form on his behalf. In case of more than one minor where the guardian is the same, a single form has to be filled by the guardian.

The form has to be filled offline and the employer has to furnish the certificate mentioning the date of death of the member. The mode of fund transfer has to be mentioned as well.

The EDLI claim form has to be submitted to the regional EPF Commissioner’s office along with the required document proofs. The claim has to be settled in 30 days and if the EPF commissioner is not able to settle the claim within 30 days, he will be liable to pay an interest of 12% per annum from the deadline date to the date of actual disbursal.

How to Claim EDLI Benefits

  • Form 5 IF has to be filled to get the insurance benefits after the death of the member
  • The member should have been (at the time of his death), an active contributor to the EPF scheme
  • The benefits can be claimed by the nominee of the member
  • In case no nominee is declared, the surviving family members will be eligible for claiming the benefits. Family under EPS is defined as spouse, male children (up to 25 years), unmarried daughters.
  • If there are no surviving family members, the insurance benefits can be claimed by the legal heir of the deceased member
  • The claim form has to be signed and certified by the employer
  • In case there is no employer, the form has to be attested by any one of the following:
    • Gazetted Officer
    • Magistrate
    • President of Village Panchayat
    • Chairman / Secretary / Member of Municipal or District Local Board
    • Postmaster or Sub Postmaster
    • MP or MLA
    • Member of CBT or Regional Committee of EPF
    • Bank Manager (of the bank in which the account was maintained
  • Form 5 IF can be filled along with Form 20 (EPF withdrawal claim in case of the deceased member) and Form 10C/Form10D to claim benefits of all three schemes (EPF, EPS and EDLI) in one go.