Page 157 - Group Insurance and Retirement Benefit IC 83 E- Book

benefits to the employees of any establishment or class of establishments to which this

Act applies. After the framing of the Insurance Scheme, a Deposit linked insurance Fund,
shall be established, into which contribution shall be paid by the employer from time to

time in respect of every such employee in relation to whom he is the employer, such
amount, not being more than 1 % of the aggregate of the basic wages ,dearness allowance

and retaining amount for the time being payable in relation to such employee as the
Central Government notified. The employer shall pay into the Insurance Fund such

further sums of money, not exceeding 1/4th of the contribution, which he is required to

make towards Deposit linked Insurance Fund.
The Insurance fund shall vest in the Central Board and be administered by it in such

manner as may be specified in the Insurance Scheme. The Insurance Scheme may

provide for all or any of the matters specified in Schedule IV .The Insurance Scheme may
provide that any of its provisions shall take effect either prospectively or retrospectively

on such date as may be specified in this behalf in that Scheme.

Applicability
Employees‘ Deposit linked insurance Fund Scheme is applicable to all the factories and

establishments to which the EPF&MA Act, 1952 applies. This includes both the exempt

and unexempt establishments covered by the Act. All employees who join the
Employees' Provident Fund are covered by the EDLIS.

Operational Framework of the Employees’ Deposit linked insurance Fund Scheme
Contributions

At the time of inception of EDLIS, contributions were made by both employer and the
Central Government. The Act specified that the employer shall contribute not more than

1% of the aggregate of basic wages, dearness allowance including cash value of food

concession and retaining allowance. In 1977 it was decided that the employer would
contribute 0.5% of the above mentioned aggregate pay, subject to a ceiling of Rs.6500.

The Central Government contributed 0.25% of the pay in respect of the covered

employees. In 1996, an amendment was passed which ended the Government's
contributions with respect to covered employees. The Government stopped contributing

in 1998. The employers continued to contribute at the rate of 0.5% of pay. The time limit