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PF EDLI Benefits | Free life insurance | Employee Deposit Linked Insurance Scheme - YouTube
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EPF gives every member
life insurance of Rs 7 Lakh
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Which is known as Employee
Deposit Linked Insurance (EDLI).
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Today we will learn about Eligibility,
Premium, Benefits, and How to claim.
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I am RISHABH JAIN.
A 3rd generation Labour law Consultant.
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And on this channel, we make the
content for employees and employers.
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Which makes them educated.
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If you haven't subscribed our
channel them please do it.
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[Intro Music]
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By the way, the links, documents,
etc referred in this video
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can be found in the description.
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EDLI full form is Employee
Deposit Linked Insurance Scheme
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This means this insurance is
linked with your PF Deposit
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It is one of the EPFO's 3 schemes
Rest two I guess you may know
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Employee Provident Fund Scheme (EPF)
and Employee Pension Scheme (EPS)
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This scheme started in 1976. The major
changes are done in 2016, 2018, and 2020.
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Which notification came on 28th April 2021.
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This is a Group Insurance Scheme.
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Which means whatever amount of PF
member are there like in crores.
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Made group of them and
ensured in this scheme.
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This means all the PF
members get its coverage.
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First thing, who pays the Premium?
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Don't worry, If you are an employee,
then you have to pay zero Premium.
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Because it's complete Premium
is paid by your employer.
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If you are a PF member, your employer will
pay an EDLI premium monthly on your behalf.
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How much is Premium?
Premium is 0.5% of PF wages.
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PF wage is calculated from basic and DA.
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Suppose Your wage is Rs. 10,000/-
Then premium for that month
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Will be 0.5% of 10,000 (Rs 50) which
will be paid by your employer
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This calculation is not done
for an individual employee.
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EDLI Calculation is done on the
sum of PF Wage of all employees
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The limit of EDLI Calculation
is up to Rs 15,000
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Assume, you are contributing
PF for Rs 50,000
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But EDLI Contribution will be Rs 75
per employee on maximum Rs 15,000
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If you are watching this
video as an employer or HR.
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How EDLI works from the
perspective of the company?
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Apart from this, we have taught many
concepts in the A-Z of PF Compliance Course
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The App and website link is
given in the description for you
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As I told you you are eligible
for EDLI if you are a PF Member
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You are covered in this scheme till
the date you are working in the company
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Some limited companies have their own Group
Insurance to give better benefits from EDLI
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They can be exempted from EDLI
but such companies are very few.
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Many consultants and HRs have
one more misconception,
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That there is a minimum limit of 12
months for consuming benefits of EDLI.
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This means you should have
continuous service of 12 months
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There is no such condition. But if
your service is less than 12 months
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Then your benefit will drastically decrease
and you will get very less benefit
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Major benefits can be
received only after 12 months
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But you can get some benefits
before 12 months. we will learn that
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Its coverage is complete.
It's not like that
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It will be claimed only if the PF Member
dies due to work-related accident
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Work-related death, non-work
related, illness, accidental, etc.
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Whatever reason is there for death
The family can claim the benefits
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Before calculating EDLI,
You should know some points
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First, is the service more than 12 months
or less? And what is the date of death?
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Is it before 15th February 2020 or after it?
The calculation will be different in both cases
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So, first, let's understand if
it's more than 12 months.
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So, this calculation is governed by the
EDLI scheme section 22 paragraph 3.
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Before 15th February 2020,
the calculation will be like this:
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EDLI Amount = 30X of average monthly
wage (Averege of last 12 months)
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+ 50% of the average PF balance in the last 12 months.
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subject to maximum of 1.5 lakh.
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Similarly, in wage also you have to subject like:
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If contribution is Rs 50,000 per month
then also it will be restricted to Rs. 15,000/-.
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Then what will be the maximum limit?
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If your average wage is Rs. 15,000/-
30X of 15,000 = 4.5 Lakh
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+ 50% of the average PF balance,
which maximum can be 1,50,000.
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So, the maximum receivable EDLI benefit
before February 2020 is Rs. 6 Lakh
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Suppose the employee's average
salary is Rs. 10,000
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And his average PF balance is Rs. 1 lakh.
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Then 10,000*30 = 3 Lakh Rupees
+ 50% of Rs. 1 lakh which is Rs. 50,000
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So, in this case, EDLI
benefit is Rs. 3.5 Lakh
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Your service must have a 12 months service
in a single company before Feb 2020
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If you worked 5 months for one
company and 7 months for another.
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Even though you worked continuously.
You were not eligible for EDLI benefits.
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There have been many improvements
after February 2020
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The limit of 6 lakh has also increased to 7 lakh
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And there are many changes in calculation also.
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So, after 15th February, the formula:
35 * average monthly PF wages
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Again restricted upto Rs 15,000 Ceilings.
Plus 50% of the average PF balance
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Here, the ceiling limit increased
from 1.5 lakh to 1.75 Lakh
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The maximum account will be 35 times.
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Assume, all Rs. 15,000 contribution is made,
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plus 50% average balance limit is Rs. 1,75,000.
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So, Rs 5.25 Lakh + 1.75 Lakh = 7 Lakh
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Again let's repeat the same example
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If the salary is 10,000 Rupees and
the average balance is 1 Lakh rupees
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So, 10,000 * 35 = 3.5 Lakh
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+ 50% of average balance(1 Lakh)=50,000
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So, EDLI benefit will be 4 Lakh
which was 3.5 Lakh before
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Also, this is the change in
this amendment that
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if your 12 months service is in multiple
establishments instead of 1 establishment
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Then also you can take benefits
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Now, let's discuss the situation when
services in less than 12 months
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In this case, benefits will be very less,
but you will get few benefits
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Which are covered under the EDLI
section 22, paragraphs 1 and 4.
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So in this particular case, the formula will be:
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average PF balance up to maximum 50,000
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Plus 40% of the amount in excess of 50,000
(subject to a ceiling of 1 Lakh)
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Then you have to multiply the
whole amount by 1.2 because you
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because you will get 20% extra
as per paragraph number 4.
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This seems very complicated,
let's understand with an example.
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First of all, assume that if
service is less than 12 years
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Then your average balance will be
more than Rs. 50,000 in very few cases
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Because generally if you are
contributing on Rs. 15,000
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Then you are contributing Rs. 1800 per month
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So, 1800 Rupees per month is
contributed by the employee
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Plus 367 Rupees is being contributed
in PF from the employer share
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So employees can deposit
maximum Rs 23,837 in 8 months
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Let's find its average by dividing
all months' balance by 11
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Then the average will be very less. Suppose
the average PF balance is Rs 15K
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So 1.2 times of 15,000 = 18,000
And it is your benefit
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By the way, In this particular case, theoretically,
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a total benefit of up to 1.8 lakhs can
be made. but that is a theoretical limit.
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Assuming that Rs 50,000 from the first
condition and 1 lakh from the second condition
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And then multiplied by 1.2
then it is 1.8 Lakh Rupees
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But this is possible only when the employee
contributes PF on a huge salary.
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Then only we can get
such a high balance
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Otherwise, we can't get such a huge balance
in the continuous service of fewer than 12 months.
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Another condition can be
like employee did a job
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And he joined another company after a gap
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But at the gap period, there was
a decent PF balance in his account
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Which he had not withdrawn.
Then the employee can get the
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maximum 1.8 Lakh benefit on up
to 12 months continuous service
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Who will get this amount? If the
PF member has filed nomination,
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Then nominee will get the benefit
and no questions will be asked
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That's why it is important to file
online nominee if not done yet
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You can watch the tutorial
the video from I Button
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I have seen many cases in which the
employee had not filed his nominee
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And if unfortunately, a member dies then
the family has to face many problems
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The legal heir will get money if
the nominee was not declared
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But it can be difficult to prove
especially if the member was unmarried
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Many questions have to be faced and
also has to get a court certificate
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If the legal heir is a minor, the money
will be transferred to his/her guardian
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How to claim it? We can claim
in online and offline both mode
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You can claim online only if
the nomination form is filled
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If the nomination form is filed
then go UN Member portal
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You will find a link like "Death Claim...."
Visit this link
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Login using the UAN Number
and nominee Aadhar details
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You will be logged in after
Aadhar OTP verification
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The list of all the needed documents
can be found on the right-hand side
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Like Death certificate, Cancelled cheque, etc
Keep all these documents' PDF file ready
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As you have to upload all
these while filing the form
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First and very important point
for all the employers and HRs
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Enter "Death in Service" and
"Death Away from service" in reason
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If the death is due to work-related
accident then enter "Death in Service"
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Otherwise, enter "Death Away From Service"
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If the reason is not Death then no
online benefits can be claimed
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And you will face many
problems in offline too
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Fill the form. Select the relevant
options and click on submit.
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In the E-Sign option, you can
authenticate it through Aadhar
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You can see the progress report.
Generally, it takes 30 days
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If the nomination form is not
filled and you are applying offline
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Then you have to download the Composite
Deth Claim form (Link in description)
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The list of all needed self-attested
documents can be found below
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Forms and all the documents should be
with seal and sign of your employer
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Then submit it to the local PF Office
If that company is closed in any case
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Then you can take the signature of Gazetted
officer or bank manager with application
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And you can submit it.
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As I told you if there is not any error
in form, whether it is online or offline
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Then PF Office has to settle
your claim within 30 days
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Otherwise, they have to pay 12%
interest on that amount to you
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There are 3 ways if you don't get any
response after correct form filing
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The first step is to file a Grievance
by visiting the PF grievance portal
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Secondly, you can file an RTI to
get the status of your application
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Third, you can complain on
PM Complaint Portal for this case
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Hopefully, you will get a
response in the first step
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So, you will rarely use step 2 or 3
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There are some important points for
employees and for employers & HRs Also
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As an employee, file
your nomination form
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Secondly, tell your family
members about EDLI benefits
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You can share this video with
them for their awareness
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Third, write down your UAN
Number at any safe place
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And tell this to at least 1 or 2
family members about it
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It is like If you have life insurance
and your family is unaware of it
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Then how will they claim benefits?
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That's why tell your family members
that life insurance is linked with UAN
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A very important point for employers.
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If an employee dies in your
company while working
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Then don't put Cessation as his exit reason
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Enter only "Death in Service"
or "Death Away From Service"
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I have seen many such practical cases
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When an employee has an accident or
long illness in service or out of service,
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So, the employer is absent from the job for
the last few days and he is in hospitalized
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Suppose he dies in hospital due to some reasons
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HRs or Employers usually make a mistake here
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Suppose the employer is not
attending office from last 15 days
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Then they show it 'left' from
the date of 15 days before
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No EDLI benefit will be available in this case. So, the better recommendation is that
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If the employee is employed in your
company but not able to come office
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Then consider it as ABSENT and fill
out his PF challan as 'nil' for that time
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If you put his reason of exit as "Death
In Service" or "Death Away From Service"
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Then employee will definetly get benefit
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Although, PF Department can demand
a lot of documents in this case
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Like payroll, pay-slips, salary register etc.
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So, prove that the employee was
unable to attend work for last some days
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But he was employed and he was
absent and died due to some reasons.
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In that case, benefits can be claimed.
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Finally, I would like to request
all HRs and employers
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To check our A-Z of PF Compliance Course
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Because you will get a lot of in-depth
details about PF in this course
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There is a great discount
going on this course right now.
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You can find all the
information in the description
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Be safe.
Jai Hind Jai Bharat
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