EPFO set to hike maximum insurance amount to Rs 5.50 lakh

The Employees Provident Fund Organization (EPFO) is likely to increase the maximum amount assured under its employees' deposit linked insurance (EDLI) scheme to Rs 5.50 lakh from the existing Rs 3.60 lakh. 

At present, in case of demise of a subscriber after one year of continuous service in the same organization, the nominee gets 20 times of average wage drawn during the past 12 months with 20% bonus Stock Market Trading Tips

With the wage ceiling of Rs 15,000 per month, the maximum amount assured works out to be Rs 3.60 lakh. 

It is now proposed that the maximum benefit should be raised to 30 times of the average pay drawn during the preceding 12 months in addition to 50% of the average balance of the EPF account subject to a ceiling of Rs 1 lakh. Once the proposal is cleared, the maximum sum assured will increase to Rs 5.50 lakh. 

The proposal also seeks to do away with the condition of two sets of calculations for computing sum assured for subscribers with less than 12 months of service and after completing 12 months. 

In the existing scheme, subscribers with less than 12 months of service are entitled to a maximum sum of Rs 1.20 lakh. This category of subscribers is entitled to a sum assured which is equivalent to their average balance in the PF account if it is less than Rs 50,000  Indian stock market astrology prediction

In case the PF balance is more than Rs 50,000, they are entitled for the same amount and in addition 40% of the amount above Rs 50,000 subject to a maximum ceiling of Rs 1 lakh. They are also entitled to 20% bonus over due amount. 

According to the annual report, the EPFO had a corpus of Rs 15,722.99 crore till March 31. It received an incremental deposit of Rs 936.12 crore towards the insurance fund in the last fiscal. 

Under the EDLI scheme, 0.5% of the basic wage of workers are contributed as insurance premium every month Commodity Market Astrology Tips