Employees deposit linked insurance scheme 1976

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Employees deposit linked insurance scheme 1976

  1. 1. Employees’ Deposit Linked Insurance Scheme 1976
  2. 2. Employees’ Deposit Linked Insurance • Applicability: • The Employee’s Deposit Linked Insurance Employee s Scheme 1976 is applicable to all establishments covered under the Employee’s Provident Fund and Miscellaneous Provisions Act 1952 Act, 1952. • The scheme popularly called ‘EDLI’ scheme. h
  3. 3. Employees’ Deposit Linked Insurance • Object: • Providing protection to the family through life insurance. • The scheme provides to the member employee a ‘T ‘Term IInsurance’ cover ’ linked to his average balance in the PF account (deposit) over a period of last 12 months before p death.
  4. 4. Amount of Cover under EDLI • Amount of Term Cover: • (i) If PF balance is up to Rs35000 Rs35000, then an equivalent amount of cover; but • (ii) if PF balance is above Rs35000, then Rs35,000 + one fourth of the excess over Rs35,000; • subject to a maximum cover of Rs60,000/-.
  5. 5. Contribution under EDLI Scheme • Contributions: • (i). By the (i) B th employer only l l • (ii) @0.50% of the salary up to • Rs6,500 pm • Salary = Basic + D.A. + Retaining Allowance + Cash l C h value of f d concessions. f food i • Important: • Salary above Rs6500 is not taken for payment of EDLI contributions. • N contribution b the employee. No ib i by h l
  6. 6. Administrative Charges under EDLI Sc e e Scheme • Administrative Charges: • By the employer only • @ @0.01% of the salary up to Rs6500 pm. y p p • Minimum charges Rs.2.
  7. 7. Numerical Q1. Mr. Q1 Mr X is an employee having the average balance in PF account to Rs.85000/ dies. Rs 85000/- dies What amount will his nominee get?
  8. 8. Ans. Ans 47500
  9. 9. Q2. Mr. Q2 Mr Y is an employee having the average balance in PF account to Rs.150000 dies, Rs 150000 dies what amount will get his nominee?
  10. 10. Ans. Ans 60000
  11. 11. • Thanks

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