The Employees’ Provident Fund Organization (EPFO) has recently increased the maximum assurance benefit under the Employees’ Deposit Linked Insurance (EDLI) scheme to Rs.7 lakh. The Labor Ministry said that the employer will not have to spend any extra for this.
Compulsory insurance cover is provided to all the subscribers of EPF under the EDLI scheme. In this, in the event of the death of the subscriber, the nominee gets a lump sum payment of up to Rs 7 lakh.
Employees of all firms covered under EPF automatically join EDLI.
In this regard, EPFO has said in a notification that the minimum insurance has been increased to Rs 2.5 lakh and the maximum insurance has been increased to Rs 7 lakh.
Insurance will be based on salary in the 12 months preceding the death of the employee. The employer and the central government contribute to the EDLI scheme. For this the employee does not have to contribute.
The Labor Ministry has said that out of the employees associated with the Employee State Insurance Corporation (ESIC), the families of those who have died of corona will also be given pension for two years.
Archit Gupta, Founder and Chief Executive, ClearTax said, “EDLI is a mandatory insurance cover from EPFO. Employees of all the firms that come under EPFO are covered.”