The EDLI full form is Employees’ Deposit Linked Insurance and is popularly known as the EDLI Scheme. It is an insurance cover that is provided by the Employees Provident Fund Organization (EPFO). EDLI means an insurance scheme for the employees of the private sector who are deprived of the financial and social security that is provided to the employees of the public sector. EDLI is based on extending the benefits provided to the private sector employees with respect to life insurance. EDLI was introduced by the government in 1976.
The scheme of EDLI is accessible to all the organizations which are registered under the Employees Provident Fund (EPF) as well as the Miscellaneous Provisions Act of 1952. The nominees of the organizations of EPF are provided with a huge amount of money, up to six lakhs, in case of any unfortunate death of the member during his or her service period.
The basic calculation of the EDLI Charge is provided below:
Employee’s average monthly salary for the past 12 months (called at Rs. 15 thousand per month) * 30 ] + amount of bonus ( Rs. 1.5 lakhs).
Therefore, the EDLI is called at Rs. 6 lakhs.