Eligible Criteria To Get The Death Benefit Under EDLI

Sir,

The deceased employee had worked in two establishment codes without any break in the same organization. However, the Provident Fund Authorities had settled the death claim under EDLI only on his provident fund balance, i.e., just Rs. 1,20,000/- instead of Rs. 6,00,000/-.

He had worked in two establishments:

First Establishment Code Service From 01-11-2004 To 30-09-2015

Second Establishment Code Service From 01-10-2015 To 25-08-2016

He died in August 2016.

Preceding 12 Months Salary:

August 2015 Rs. 13,757.00
September 2015 Rs. 14,198.00

2nd Establishment October 2015 Rs. 13,899.00
November 2015 Rs. 13,899.00
December 2015 Rs. 13,899.00
January 2016 Rs. 13,899.00
February 2016 Rs. 13,899.00
March 2016 Rs. 13,899.00
April 2016 Rs. 15,000.00
May 2016 Rs. 15,000.00
June 2016 Rs. 15,000.00
July 2016 Rs. 15,000.00

His average salary was Rs. 14,279.

So, please clarify how much amount the nominees will get under EDLI.

Kindly inform whether the employee has transferred his PF balance from his first employer to the second employer. If he has transferred, then only the benefits of the first employer are available under EDLI.

The entire provident fund balance from the previous account to the present account has been transferred before the member's death. The provident fund balance is Rs. 3,20,000/- upon the member's death.

Adding my view, I think Mr. GUNNAM_BHAGAVAN has some confusion because, as he was saying, settling a death claim under EDLI only is not justified. Based on my knowledge, there are 03 parts under the act:

01. Employee Provident Fund - which is paid to nominees, whatever is deposited in the Employee Provident Fund.
02. Family Pension - is calculated based on the total length of service and last drawn salary, and is given to the nominee as well as children.
03. EDLI - It is a linked insurance and works similarly to other insurances. It is based on 30 times the last drawn salary and a bonus of Rs. 1.5 lakh, so there is no relation with duration; it is only insurance.

Dear Mr. Gunnam,

As per the EDLI Act, paragraph 22-1, his PF balance averages Rs. 1 L - as he has not completed 1 year under the same employer. (Equals Rs. 50 K + 40% of the excess of 50 K, max to Rs. 1 L.) As per EDLI Act, paragraph 22-4, the amount arrived at as per paragraph 22-1, 2, 3 - 20% in addition, whichever is higher. Accordingly, Rs. 1 L + 20% = Rs. 1.20 L is the EDLI amount.

Thanks,
Vidyadhar Bhat

If an employee did not attend his duties for 6 months, did not receive any salary, and then passed away, are EDLI benefits applicable or not?

Dear Mr. Chandratre,

The payment is done as per para 22-1 or 2 or 3, whichever is higher. Para 22-1 is related to PF balance, and para 3 is related to 12 months wages, max 15K, in the same establishment. If there are no wages for six months, naturally the average will be lower, and he will be eligible for benefit para 1 as mentioned above.

Thanks,
Vidyadhar Bhat

If an employee declared absconded as he remained absent from work due to severe illness but was neither terminated nor resigned in writing, and he passed away after 3 months, is he eligible for EDLI and family pension? He worked in the company for 6 years, and all these events happened unintentionally. What is the solution for this?

Sir,

My brother-in-law was employed in a Travel agency in Gurugram-based company and had worked there for more than 9 months. He died in a road accident in Nov 2010 while coming back home from the office. His company later forwarded a request to the ESI Haryana authority to grant ESI pension on account of job injury. My sister, along with her two minor children, has been receiving ESI pension from Nov 2010 till today.

Due to ignorance, we could not follow up on EPF-EDLI pension. I request you to please guide whether she is eligible for EPFO pension in the same way as ESI. If yes, then what procedures are required, and what formalities need to be done. Please provide a detailed explanation.

I will be highly obliged for an earliest response.

P. S. Negi
9919519865
16th August 2018
From In

Dear Negiji,

Please find out from the employer whether the deceased employee was covered under EPF at the time of death. If yes, contact the employer for the following:

1. Refund of EPF accumulations to nominee/wife
2. Pension for wife & 2 children under EPS, 1995
3. Claim under Employees' Deposit Linked Insurance Scheme to nominee/wife for death while in service

Thank you.

Thank you, Mr. Sai Ram, for providing me with clear-cut guidelines on the matter. I will act accordingly and seek further advice if required.

Warm Regards,

P. S. Negi

9919519865

Widow can be eligible for EDLI benefits after the normal death of a pensioner.