If you do a job and your Provident fund is deducted, then there is news of your benefit. Due to covid 19, the labor ministry has increased the insurance cover of the Employees Deposit Linked Insurance Scheme (EDLI). Apart from this, additional facilities have also been given for employees through social security schemes of Employees' Provident Fund Organization (EPFO) and Employees' State Insurance Corporation (ESIC). These include increasing the amount assured under EDLI from Rs 6 lakh to Rs 7 lakh. According to the ministry, employees are being given better social security without putting any extra burden on the companies.
Advantages of EDLI
Under ESIC, in the event of death or disability of the insured, the spouse and widowed mother get a pension for life and children up to the age of 25 years, equal to 90 percent of the average daily wage of the employee. In the case of the employee's daughter, she gets this benefit till her marriage.
What is EDLI Scheme
Under the Employees Deposit Linked Insurance Scheme (EDLI), 1976, the minimum sum insured on the death of the account holder is now Rs 2.5 lakh and the maximum is Rs 7 lakh. Earlier this amount was Rs 2 lakh and Rs 6 lakh. This amount is available when the account holder dies untimely. In the EDLI scheme, the employee does not have to pay any money, but the contribution is made by the company. Let us inform you that the companies registered in EPFO deduct PF of those with a salary above 15 thousand. In this, the company contributes 12 percent of the basic salary of the employees and the same amount. Out of this, some amount goes towards EDLI's premium.
How much is the claim
EDLI claim has a different formula. In this, a claim is made by adding 35 times the average of the employee's basic for the last 12 months and 50 percent of the average PF balance during the last 12 months, which does not exceed Rs 1,75,000. If the employee has worked for 12 consecutive months, then the minimum salary is up to Rs 2.5 lakh.
How to get the claim
In case of the untimely death of the employee, the nominee can claim for the insurance cover. If the age of the claimant is less than 18 years, then someone else can make a big claim of the house. For this, the employee's death certificate, succession certificate, nominee's certificates and bank account information will be required.