You must know that some part of salary of employed people is deposited in EPF every month. Employee Provident Fund Organization (EPFO) manages the PF of people working in the private sector. The money deposited in the EPFO account is the biggest investment of the future. In such a case, when you retire, all the PF money goes to the employees.
EPFO is completely risk free and its interest is usually higher than other investment institutions. To give interest on the PF amount to the employee, EPFO invests this money in many places. Along with securing your future, EPFO also gives you a free insurance of Rs 7 lakh.
I’s full form is Employee Deposit Linked Insurance Scheme also known as Malam Sum Linked Insurance Scheme. The EDLI scheme of the Employees Provident Fund Organization helps people in providing social security. Under this scheme, in case of accidental death of an employee during employment, his family or legal heir is paid 35 times of the employee’s monthly salary for 12 months subject to a maximum of Rs 7 lakh.
EDLI scheme was started in 1976
Explain that EDLI scheme was launched by EPFO in the year 1976. This insurance is given to the family or legal heirs if the employee has worked in more than one organization within 12 months before the death. Under the EDLI Scheme 2022, a minimum contribution of 0.5% of the employee’s monthly salary is made by the employer. Note that 8.33% of the total amount deposited in PF account is deposited in EPS, 3.67% in EPF and 0.5% in EDLI scheme. Most of the people take advantage of EPF and EPS scheme, but very few people know about EDLI scheme.