EDLI stands for Employee’s Deposit Linked Insurance Scheme, which is a social security scheme under the Employee’s Provident Funds and Miscellaneous Provisions Act, 1952 in India. The scheme provides life insurance benefits to the dependents of employees who are covered under the EPF scheme in case of the employee’s death.
Under the EDLI scheme, a certain percentage of the employee’s salary is contributed towards the insurance fund, along with a matching contribution from the employer. The contributions made towards the insurance fund provide a life insurance cover to the employee, which is payable to their dependents in the event of the employee’s death.
The amount of insurance cover under the EDLI scheme is linked to the employee’s salary and the contributions made towards the insurance fund. The scheme provides a minimum insurance cover of Rs. 2.5 lakhs and a maximum of Rs. 7 lakhs.
The EDLI scheme is an important social security measure for employees in India, which provides financial protection to their dependents in case of the employee’s untimely death. It ensures that the dependents of employees have a secure and stable source of income in case of an unfortunate event.
