Employees Deposit Linked Insurance Scheme (EDLI)
Essential features of EDLI which apply to all beneficiaries that come under the scope of the policy:
- All employees who get a basic salary under INR 15,000 per month are eligible for the EDLI scheme. The highest benefit is limited to INR 7,00,000 of the basic salary if it exceeds INR 15,000.
- There are no exclusions under the Insurance coverage offered in EDLI.
- Employees only need to contribute towards EPF and do not require to contribute EDLI.
- A bonus of INR. 1,50,000 is available under the EDLI scheme.
- If an organization has more than 20 employees, it becomes mandatory for them to register for EPF. Any employee who has an EPF account gets eligible for the EDLI scheme by default.
- EDLI provides comprehensive Insurance coverage round the clock and all around the world for the registered employee.
- An employer can go for other group Insurance schemes, but the benefit must be more or equal to the offerings under EDLI.
- The employer's contribution has been made mandatory of 0.5% of the basic salary or a maximum of INR 75 per employee per month. If the employer does not have any group Insurance in place, the maximum contribution is limited to INR 15,000 per month.
- DA allowance needs to be added to the basic salary for all calculations under EDLI.
- The nominee mentioned in the document will get the lump sum amount if the insured person dies during the operational term. If the nominee is not available or not mentioned, then the proceeds will be given to the eligible legal heir.
