The Ministry of Labour and Employment has, by way of Notification dated April 28, 2021, effective immediately, issued an amendment to the Employees’ Deposit-Linked Insurance Scheme, 1976 (‘EDLI Scheme’). The amendments which are effective immediately, other than with respect to paragraph (ii) below, which is effective from February 15, 2020, are detailed as follows:
i. Amount of maximum assurance benefit that can be availed of under the EDLI Scheme by the family members/dependents of the deceased employee stands increased from ₹ 6 lakh (approx. US$ 8,000) to ₹ 7 lakh (approx. US$ 9,500).
ii. An amount of minimum assurance benefit of ₹ 5 lakh (3,500) can be availed of by the family members/dependents of the deceased employee retrospectively with effect from February 15, 2020.
iii. The benefit under the EDLI Scheme is now extended to the family members/dependents of a deceased employee who was a member of the provident fund or an exempted provident fund and was employed for a continuous period of 12 months preceding the month in which he died, irrespective of a change of establishment during such period.
iv. The monetary penalty for contravention of the EDLI Scheme has been increased from ₹ 4,000 (approx. US$ 50) to ₹ 25,000 (approx. US$ 350).