EPFO’s Deposit Linked Insurance Scheme: Get benefits up to Rs 7 Lakh, zero contribution required

New Delhi: Retirement fund body Employees’ Provident Fund Organisation’s (EPFO) had in April this year hiked the death insurance benefits for employees’ deposit-linked insurance (EDLI) scheme beneficiaries, amidst the onslaught of the second wave of the COVID-19 Pandemic.

The retirement fund body had hiked the minimum death insurance benefit to Rs 2.5 lakh while the maximum benefits have been raised to Rs 7 lakh from the previous limits of Rs 2 lakh and Rs 6 lakh respectively.

EPFO had extended the benefit payable under EDLI Scheme shall be extended to such beneficiaries where the deceased employee was a member of the Fund or a provident fund exempted under Section 17 of the EPF & MP Act aid was in employment for a continuous period of 12 months preceding the month in which he died, irrespective of change of establishment during the said period.

Under paragraph 28(4) of EDLI Scheme, the power to grant exemption to a Class of employees from the provisions of the scheme has been delegated to ACC (Zone), the EPFO notification further added. The monetary fie payable under paragraph 29 of EDLI Scheme has been enhanced to Rs.25,000.

The provisions as mentioned above shall remain in force for a period of three years from their date of publication in the Official Gazette, EPFO had said.

Here are 6 salient features of the EPFO Deposit Linked Insurance Scheme

1. Maximum assured benefit upto Rs 7 lakh paid to nominee or legal heir of EPF Member, if death occurs while in service.

2. Maximum assurance benefit of Rs 2.5 lakh, if deceased member was in continuous employment for 12 months prior to his/her death.

3. Minimal contribution by employer @0.5 percent of employee’s monthly wages, upto wage ceiling of Rs 15,000.

4. No contribution paid by employee

5. Auto enrollment of PF Members in EDLI Scheme.

6. Benefit directly credited to bank account of nominee or legal heir.

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