The Employees' Deposit Linked Insurance (EDLI) Scheme is a government-backed life insurance program designed to provide financial security to the families of salaried employees in India. If you're contributing to the Employees' Provident Fund (EPF), you're automatically covered under this scheme-at no extra cost to you.
The EDLI Scheme, administered by the Employees' Provident Fund Organisation (EPFO), offers life insurance coverage to employees who are members of the EPF. In the unfortunate event of an employee's death during active service, the scheme ensures that their family receives a financial benefit.
To be eligible for the EDLI Scheme:
EPF Membership: You must be an active member of the Employees' Provident Fund.
Employer Contribution: Your employer must be contributing to the EPF and EDLI schemes.
Minimum Employee Count: The organization must have more than 20 employees to be eligible for the EDLI scheme.
Salary Cap: While there's no specific salary cap for eligibility, the maximum benefit under the scheme is ₹7 lakh.
Maximum Coverage: Up to ₹7 lakh, combining the insurance amount and the bonus.
Bonus: ₹1,75,000 as a fixed bonus amount.
Minimum Assured Benefit: ₹2,50,000 if the employee has been in continuous employment for 12 months before their demise.
Calculation Formula: 35 times the last drawn salary (basic + dearness allowance) + ₹1,75,000 bonus.
No Employee Contribution: Employees are not required to make any contributions; the entire premium is borne by the employer.
In the event of an employee's death, the nominee or legal heir can claim the EDLI benefit by submitting the following documents:
Form 5 IF: Duly completed claim form.
Death Certificate: Official certificate confirming the employee's death.
EPF Account Details: Details of the deceased's EPF account.
Cancelled Cheque: For direct transfer of the claim amount.
Nominee Details: If a nominee is registered.
Legal Heir Certificate: If no nominee is registered, a legal heir certificate is required.
These documents should be submitted to the EPFO through the employer.
Job Change: If you switch jobs, your EDLI coverage continues as long as you remain a member of the EPF.
Nominee Update: It's advisable to update your nominee details whenever there's a change in personal circumstances.
No Medical Examination: There's no requirement for a medical check-up to be covered under the EDLI Scheme.
Global Coverage: The insurance coverage is valid worldwide, ensuring protection regardless of the employee's location.
No Minimum Service Period: Employees are covered from the day they join the EPF, with no minimum service duration required.
Contribution: Employers contribute 0.5% of the employee's basic salary (up to a maximum of ₹75 per month) towards the EDLI Scheme.
Nominee Registration: Employers assist employees in registering their nominees through the EPF system.
Claim Facilitation: In case of a claim, employers play a crucial role in facilitating the process by submitting necessary documents to the EPFO.
In July 2025, the Ministry of Labour and Employment announced relaxed eligibility criteria for the EDLI Scheme. These changes aim to broaden the coverage and make the scheme more accessible to a larger number of employees, enhancing social security measures across India. The Economic Times
Automatic Coverage: If you're a member of the EPF, you're automatically covered under the EDLI Scheme.
No Cost to Employees: There's no financial burden on employees; the entire premium is paid by the employer.
Financial Security: The scheme provides significant financial protection to the families of employees in case of untimely demise.
Global Protection: Coverage is valid worldwide, ensuring employees are protected regardless of their location.
The EDLI Scheme is a vital component of India's social security framework, offering life insurance coverage to salaried employees without any cost to them. It's essential for employees to be aware of this benefit and ensure their nominee details are up to date. Employers also play a crucial role in facilitating the scheme and assisting employees in the registration and claim processes.