Sunday, 15 November 2015

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

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.


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


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


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


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


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.


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.


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.


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.

1 comment:

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