Centre

Centre amends the Employees’ Deposit-Linked Insurance (Amendment) Scheme, 2021

The Central Government has revised the Employees’ Deposit-Linked Insurance (EDLI) Scheme to increase the monetary benefits to the claimants. On death of an employee, claimants are eligible up to 7 lakhs of assurance benefit.

The EDLI (Amendment) Scheme is effective from 28 April 2021 and the first proviso (assurance benefit shall not be less than two lakh and fifty thousand rupees) is retrospectively effective from 15 February 2020 for a period of 3 years.

As per the EDLI (Amendment) Scheme, 2021 the above-mentioned provisions to be read as:

Paragraph 22(3) -

On the death of an employee, who is a member of the Fund or of a provident fund exempted under Section 17 of the Act, as the case may be, and was in employment for a continuous period of twelve months, preceding the month in which he died, the persons entitled to receive the provident fund accumulations of the deceased shall, in addition to such accumulations to be paid an amount, equal to:-

(I) The average monthly wages drawn subject to a maximum of fifteen thousand rupees, during the twelve months preceding the month in which he died, multiplied by thirty five times plus fifty percent of the average balance in the account of the deceased in the fund or of a provident fund exempted under section 17 of the Act or under paragraph 27 or 27 A of the Employees’ Provident Funds Scheme, 1952, as the case may be, during the preceding twelve months subject to a ceiling of one lakh and seventy-five thousand rupees:

Provided that the assurance benefit shall not be less than two lakh and fifty thousand rupees: Provided further that the assurance benefit shall not exceed seven lakh rupees:

(The amount of benefit under sub-paragraph (I),

Whichever is higher.

Paragraph 28(4)(i)

The Central Provident Fund Commissioner (or Additional Central Provident Commissioner (Head Quarters) or Additional Central Provident Fund Commissioner) may by order and subject to such conditions as may be specified in the order exempt from the operation of all or any of the provisions of this Scheme any class of employees to whom this Scheme applies, on receipt of an application therefor, in such form as the Commissioner may specify:

Paragraph 29 - Punishments for failure to submit returns etc.

If any person –

  • Deducts or attempts to deduct from the wages or other remuneration of a member the whole or any part of the employer’s contribution, or,
  • Fails or refuses to submit any return, statement or other documents required by this Scheme or submits a false return, statement or other documents, or makes a false declaration, or
  • Obstructs any Inspector or other official appointed under the Act or this Scheme in the discharge of his duties or fails to produce any record for inspection by such Inspector or other official, or
  • Is guilty of contravention of or non-compliance with any other requirements of this Scheme, He shall be punishable with imprisonment which may extend to one year or with find which may extend to twenty-five thousand rupees, or with both.
Related Acts
  • PF Act

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