HomeInvestmentSaving SchemesEmployees Deposit Linked Insurance Scheme (EDLI)

Employees Deposit Linked Insurance Scheme (EDLI)

Employees’ Provident Fund Organization (EPFO) proves cover insurance which is known as Employees Deposit Linked Insurance or EDLI according to which a legal nominee of an active member of EPFO gets a payment of approximate rupees 6 Lakhs in case of any miss happening (death) of the member during the service period. All organizations covered under the Employees’ Provident Fund (EPF) and Miscellaneous Provisions Act, 1952 get enrolled for EDLI automatically. Combining both EPF and EPS this scheme works.

ELDI Scheme

EDLI Scheme

Employees Deposit Linked Insurance scheme was launched in 1976, basically to provide benefits of insurance to the members of EPFO. The main motive behind launching EDLI scheme was to provide financial support to the family of the members in case the member dies because of any reason. There is no exclusion whatsoever in this scheme, whatever the reason was of the death for the member, the family will receive money on behalf of that member. This amount of this insurance will depend on the last 12 months salary of employment before the death of that person. 

Details of EDLI scheme are given below:

  • This insurance will provide benefit only to the family members, insurance will be available for only the legal heirs or nominees of the member. 
  • If you are a member of EPFO, you will automatically get enrolled for EDLI. 
  • As long as an EPFO member is an active member of EPF till then only it will be covered under the EDLI scheme. As soon as he/she leaves the EPF registered company and its services, family members cannot claim for this scheme. 
  • There is not any minimum service period for availing of the benefits of EDLI. 
  • The employee has to make the contribution for EDLI and no fee deduction from employees’ salary can happen. 
  • 30 times the average monthly salary in the past 12 months is the claim amount under EDLI. Amount maximum is 6 lakhs (4.5 lakh basic + 1.5 lakh bonus).
  • The Basic + Dearness Allowance is how the average monthly salary is calculated of the employee. 
  • A bonus of 1.5 lakh is also applicable under this scheme. 
  • In case if the employee takes a higher paying life insurance scheme for employees under Section 17 (2A), he/she can opt-out of the EDLI scheme.

Eligibility Criteria of EDLI

Not everyone is allowed to claim for this scheme, only the following people are eligible to apply for claiming the benefits of this insurance under the EDLI scheme:

  • Nominees of the members nominated under the EPF scheme. 
  • In case of no nomination, all members of the family (except major sons, married daughters with major sons, and married granddaughter) 
  • In case there is no family of the member, and no nomination, the legal heir is eligible
  • Or else the guardian of a minor nominee/ family member/legal heir can be eligible. 

How EDLI Calculated?

There is a method of calculating the insurance that the nominee of a deceased member gets which is 30 times the average monthly salary in the past 12 months of employment. 

Rs.15,000 thousand is the maximum average monthly salary capped of an employee.  So, 30 times the salary comes around to be 30 × 15,000 which is equal to Rs.4,50,000

A bonus amount of up to Rs.1,50,000 is also paid as per the claim in the scheme. And that is how Rs.6,00,000 becomes the total amount payable under this scheme to the beneficiary. 

EDLI Coverage

EPF scheme Employees contribution
EDLI 0.5% (subject to a maximum of rupees 75) 

The meaning of the above table is that all employees who get a basic salary under Rs.15,000 per month are eligible for the EDLI scheme. 

There is a provision of EDLI that they employ must be contributing 0.5% of the basic salary or a maximum of rupees 75 per employee per month. In case the employer doesn’t take any group insurance, then the maximum contribution is limited to INR rupees 15,000 per month.

EDLI Contribution

The worker, similarly because the employer, contribute to all or any three schemes surpass the EPFO. The contribution created for each scheme is as follows:

EPFO Scheme Contribution of Employees Contribution of Employer
EPF 12% 3.67%
EPS 8.33%
EDLI 0.5% (max Rs. 75)

Is EDLI mandatory?

Yes, EDLI is mandatory for all those organizations who come under or registered under Employees Provident Fund and Miscellaneous Provisions Act, 1952. The government has made it compulsory for such organizations to fall under this scheme so that it can provide benefits to all the employees working in these organizations. This scheme works in combination with EPS and EPF. The benefits of this scheme depending on the amount paid to the employee. 

How to claim EDLI benefits?

In case of the unfortunate death of a member, the family gets insurance of up to 6 lakhs under the scheme of EDLI and also they get a monthly widow/child/orphan pension under the scheme of EPS. 

The family no matter minor or lunatic, can claim PF withdrawal using EPF form 20 with duly completed form 5 IF. On these forms if the signature of the employer cannot be obtained, the form must be attested by any of these followings:

  • Signature of local MP or MLA
  • Signature of any Gazetted Officer
  • Signature of Magistrate
  • Signature of Chairman or Secretary of the Local Municipal Board
  • Or signature of the Member of the regional committee of EPF or CBT. 

Since so many are dying because of this second wave of COVID-19, this insurance scheme will benefit a lot of families of deceased people. 

EDLI Amendment 2021

The government has made some amendments to this scheme in 2021 by increasing some the amount which is given below:

  • Earlier there was a bonus of 1,50,000 which was given to the employees’ family but now from 28.04.2021, it has increased to rupees 2.5 lakhs. 
  • As the bonus amount has increased, so there is an increment in the total amount also. Earlier it was 6 lakh rupees but now it is 7 lakh rupees, with effect from 28.04.2021
  • Earlier in February 2018, the ministry had increased the minimum amount of benefit to rupees 2.5 lakh, which was valid for two years. But now the EPFO has extended this minimum amount of rupees 2.5 lakh with effect from 15 February 2020.

Frequently Asked Questions

Q1. What is the full form of EDLI?
Ans. The full form of EDLI is Employees’ Deposit Linked Insurance. 

Q2. What is EPFO?
Ans. EPFO (Employees’ Provident Fund Organization) proves cover insurance which is EDLI. 

Q3. Who can get the benefits of the EDLI scheme?
Ans. The family (nominee) of the member of EPFO will get the benefits of this scheme. 

Q4. How much amount does the family of the EPFO member get under this EDLI scheme?
Ans. Earlier the total amount was approximately 6 lakh rupees but after the amendment in the scheme, this amount is increased to 7 lakh rupees.



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