EPFO clarifies on EDLI pension scheme, says member on LWP is eligible for death benefit


The Employees’ Provident Fund Organisation (EPFO) has made it clear that a Provident Fund (PF) or an Employees’ Provident Fund (EPF) account holder is eligible for assured benefit under Employees Deposit Linked Insurance (EDLI) scheme, even when he is on leave without pay and its monthly EPF or PF contribution is not coming to its provident fund account. But the EPFO member has to be on the muster roll of the recruiter on the day of death and satisfies other conditions to claim the assured benefit.

The EPFO issued notification in this regard citing, “In case where an employee member was on leave without wages (consequently no contribution was payable by the employer) or absent for any other reason and expired during the period, the Assurance benefit is admissible irrespective of the fact that no contribution was paid by the employer, provided he was on the muster rolls of the establishment on the day of death and satisfied the prescribed conditions.”

The EPFO went on to add that references and complaints have been received that even where and employee has died while in service, some offices are rejecting the claims saying that the PF contribution was not received during the previous few days and therefore the EDLI benefits are not payable on account of such NCP days.

Directing the establishments to avoid harassing the family members of the deceased PF account holder, the EPFO said, “Due verification shall be done but it should be done within 7 days and the family members should not be harassed. In cases where employer states that the member is on the muster rolls and the EO says otherwise, the reason why the employer version is not acceptable to us should be clearly listed out and examined at office.”

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

The average monthly wages drawn (subject to a maximum of ₹15,000) during the twelve months preceding the months in which he died, multiplied by 35 times plus 50% of the average balance in the account of the deceased in the fund of of the provident fund exempted under Section 17 of the Act, or under paragraph 27 or 27A of the Employees’ Provident Fund Scheme, 1952, as the case may be, during the preceding twelve months or during the period of his membership, whichever is less subject to a ceiling of of ₹1.75 lakh, provided that the assurance benefit shall not be less than ₹2.50 lakh or more than ₹7 lakh.

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