World Connect News
If you’re employed and your salary is deducted monthly from your PF (Provident Fund), a new decision by the central government could brighten your fortunes. The scope of the free life insurance (EDLI) scheme, available under the Employees’ Provident Fund Organization (EPFO), could now increase from ₹7 lakh to ₹10.5 lakh. The ground for this major change has been prepared after the government increased the mandatory wage ceiling.
Big increase in salary limit, lakhs of employees are happy
Recently, the government has approved the decision to increase the mandatory salary limit (Wage Ceiling) of EPFO from ₹15,000 to ₹25,000 per month.This historic decision will directly benefit employees who were previously outside the scope of PF. This single step will provide social security coverage to over 5.1 million new employees across the country, allowing them to benefit from PF savings and EPS pensions.
Know the math behind insurance of ₹10.5 lakh
EPFO members get the benefit of insurance free of cost without paying any premium through the Employees’ Deposit Linked Insurance (EDLI) scheme. Under the current rules, the sum assured is calculated on the basis of (15,000 × 35) + ₹1.75 lakh = ₹7 lakh. But now with the salary limit being ₹25,000, the math works out to (25,000 × 35) + ₹1.75 lakh = ₹10.50 lakh. This means that in case of any untoward incident during the job, the amount received by the nominee can increase by a huge amount of ₹3.5 lakh.
What do employees need to keep in mind?
Employees don’t have to spend a single penny from their own pockets, as the entire premium is paid by the employer. However, this ₹10.5 lakh insurance cover will only become fully effective after the official calculation notification is implemented. Therefore, keep your basic details and nominee information updated promptly on your salary slip and the UAN portal so that your family can receive the full benefits of this security cover in a timely manner.
