The Employees’ Provident Fund Organization (EPFO) has made it clear that a Provident Fund (PF) or Employees’ Provident Fund (EPF) account holder is eligible for assured benefits under the Employees’ Deposit Linked Insurance (EDLI) scheme, even if he is not paid is on leave and his monthly EPF or PF contribution is not credited to his provident fund account. But the EPFO member must be in the muster roll of the recruiter on the day of death and must satisfy other conditions to claim the assured benefit.
The EPFO while issuing a notification in this regard said, “If a staff member was on leave without pay (resulting in no contribution being payable by the employer) or was absent for any other reason and expired during the period, the assurance The benefit is admissible given the fact that no contribution was paid by the employer, provided he was in the muster roll of the establishment on the day of his death and satisfies the prescribed conditions.”
The EPFO further said that references and complaints have been received that even where and the employee has died while in service, some offices are rejecting the claims stating that the PF contribution was not received during the last few days. and hence there are no EDLI benefits. Payable on account of such NCP days.
Instructing establishments to avoid harassing the family members of the deceased PF account holder, the EPFO said, “Proper verification will be done but it should be done within 7 days and the family members should not be harassed. As such. In cases where the employer states that the member is on muster roll and the EO states otherwise, the reason why the employer version is not acceptable to us should be clearly listed and checked in the office.”
The EDLI scheme states that on the death of an employee, who is a member of the fund or provident fund, as the case may be, under section 17 of the Act, who was in employment for a continuous period of the preceding twelve months. In the month in which he died, persons entitled to receive provident fund accumulation of the deceased shall be paid an amount equal to such accumulation in addition to such accumulation of the deceased:
Average monthly salary worked out (Subject to maximum) 15,000) during the twelve months preceding the month in which he died, multiplied by 35 times 50% of the average balance in the account of the deceased, in a fund of provident fund exempted under section 17 of the Act, or under section 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 its membership, whichever is less, subject to a maximum limit of Rs. 1.75 lakh, provided the assured benefit is not less than 2.50 lakh or more 7 lakhs.
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