Earlier the death cover for PF account holders was 6 lakh rupees, now it has been increased to 7 lakh rupees.
EPFO: In this crisis, the Employees Provident Fund Organization (EPFO) is giving a debt claim cover of seven lakh rupees to the family. A PF account holder is eligible for free insurance up to 7 lakh rupees under the EDLI scheme if he dies during his service.
Premiums are paid by the company under this scheme. 12% of the basic salary + DA of employees working in the organized sector goes to the Employee Provident Fund (EPF). The contribution of 12 per cent is also from the company / employer. Of the Employer’s 12 per cent contribution, 8.33 per cent of the Employee Pension Scheme goes to EPS and the rest to EPF. Further, in the EDLI scheme only the premium is paid by the employer, which is 0.50 per cent of the basic salary and dearness allowance of the employee. However, the maximum basic salary limit will be 15 thousand rupees only. Also read- Put money in this policy of LIC, there will be no tension of monthly expenses! You will get 9 thousand rupees every month Learn how to calculate In the EDLI scheme, the claim is calculated on the basis of the last 12 months basic salary + DA received by the employee. Under the latest amendment, the claim for this insurance cover will now be 35 times the last basic salary + DA, which was 30 times earlier. Also, there will now be a maximum bonus of Rs 1.75 lakh, which was earlier a maximum of Rs 1.50 lakh. This bonus is considered to be 50 per cent of the average PF balance during the last 12 months. For example, if the last 12 months basic salary + DA is Rs 15000, then the insurance claim (35 x 15,000) + Rs 1,75,000 = Rs 7 lakh. This is the maximum claim.