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      Employees’ Deposit Linked Insurance Schemes (ELDI), 1976 (Amended)

      Sunday, November 15th, 2015 Amritesh 3 responses

      Employees’ Provident Fund (EPF) and Employees’ Pension Scheme (EPS) are some of the Social Security Welfare measures adopted by the Government in the best interest of the individuals. Employee Deposit Linked Insurance Scheme (ELDI) was launched as a Statutory Benefit applicable to all the Employees covered under the Employees Provident Fund and Miscellaneous Provisions Act,1952. ELDI is the Life Insurance cover extended to the Employees and is payable to the nominee in case of death of the subscriber while he/she is subscriber to the Fund. It is payable to the nominee in addition to the Provident Fund deposits and Pension Benefits eligible under the act.

      APPLICABILITY

      The Act is extended to all the Subscribers covered under the Employees Provident Fund Scheme,1952.

      ADMINISTRATIVE AUTHORITY

      The Scheme is administered by the Central Board constituted as per the provisions under the Act.

      EMPLOYEE COVERAGE

      Every Employee, including the ones employed through a contractor, who is in receipt of wages/salary up to Rs 15,000 p.mshall be mandatorily covered under the Scheme.
      Employees’ earning in excess of Rs 15,000/- pm may also be covered under the scheme.

      CONTRIBUTION

      Employer has to contribute 0.5% of the monthly Basic and Dearness Allowance of an employee to the Insurance Fund. Employee is not required to make any contribution to the Fund.
      In addition, 0.1% of the employee’s wages/salary subject to minimum of Rs 2 every month has to be paid to meet the administration expenses of Deposit Linked Insurance Fund.

      NOMINATION

      Nomination made under Employees’ Provident Fund Scheme will be treated as Nomination under ELDI.

      BENEFITS and AMENDMENTS

      Recently, the Benefits under scheme has been revised. The Insurance benefit has been increased to 6 lacs from the existing 3.6 lacs. Subscribers who have worked in the same organization continuously for one year are eligible under the scheme.

      Note:- ***Recommendation have been made by the Central Board of Trustees to remove the existing condition of continuous employment under one employer for one year to be eligible for benefits.

      BENEFITS CALCULATION

      For the purpose of calculation of Benefits, the maximum salary ceiling has been capped at Rs 15,000/- pm.
      The claim is calculated according to the new format:-
      30 times of the Last drawn Salary (Basic + Dearness Allowance subject to the maximum salary cap of Rs 15,000/-)
      In addition, Bonus of Rs 1,50,000/-  is also provided to the nominee.

      BENEFIT CLAIM

      In order to claim the benefits, Nominee needs to fill up the Form 5 and submit the same along with the copy of death certificate.

      EXEMPTION from ELDI

      U/S 17 (2A) of the Employees’ Provident Fund Act (EPF), an employer may be exempted from contributing in the scheme, provided they can avail a better alternative which provides greater benefits to the employees.
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      Amritesh is an experienced professional in the field of HR, Finance and Compliance. He is currently working in the IT Industry with an US based firm. He took up Blogging as a hobby which eventually turned into passion. He primarily focuses on topics related to Personal Finance, HR, Compliance and Technology.
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      3 Comments on "Employees’ Deposit Linked Insurance Schemes (ELDI), 1976 (Amended)"

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      Anoop Kumar
      Guest

      Pls. tell me about date of applicability of amendment in benefit to Rs 6 lacs.

      Anoop

      prasad
      Guest

      When did this amendment in EDLI scheme is come into force??

      Though this amendment was announced in Sept-2015, Govt Gazette was published in May-2016…
      So the persons who passed away in between Sept -15 to May -16 are eligible for 3.6 lacks or 6 lacs??

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