News Desk
25 October 2025, 02:40 PM IST
The EPFO EDLI Scheme provides up to Rs 7 lakh life insurance cover for private sector employees.
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For private sector employees across India, the Employees’ Deposit Linked Insurance (EDLI) Scheme by the Employees’ Provident Fund Organisation (EPFO) continues to be a major source of security for their families. Introduced in 1976, the scheme ensures that if an employee covered under the EPF passes away during service, their nominee or family receives financial assistance of up to ₹7 lakh.
This initiative by the EPFO acts as a life insurance cover for private employees, offering support when their families need it most.
What is EDLI scheme?
The EDLI Scheme provides an insurance payout to the nominee or legal heir of a deceased employee who was an EPF member at the time of death. The payout depends on the employee’s last drawn salary and is calculated as per EPFO’s latest rules revised in 2021.
Under the new norms, the maximum benefit can go up to ₹7 lakh, while the minimum assured amount is ₹2.5 lakh. The best part — employees don’t have to make any direct contribution for this insurance cover.
Employers contribute 0.5% of the employee’s basic pay (capped at ₹15,000 per month) towards EDLI, with a maximum limit of ₹75 per month per employee.
Key benefits of the EDLI scheme
Every employee enrolled under the Employees’ Provident Fund (EPF) is automatically covered under the EDLI Scheme; no separate registration or premium is needed.
The nominee or legal heir receives up to ₹7 lakh, calculated as 35 times the average monthly salary plus a bonus of ₹1.75 lakh.
Even if the employee’s salary is low, the nominee will still receive a minimum of ₹2.5 lakh as insurance benefit (effective from 15 February 2020).
The EPFO mandates that all claims must be settled within 20 days. If there is any delay, the family is entitled to 12% annual interest on the amount.
Employees don’t pay a single rupee towards this benefit, the employer handles all contributions on their behalf.
Eligibility and claim process
All organisations with 20 or more employees covered under the EPF Act, 1952 must automatically include their staff under the EDLI Scheme.
Eligible family members for the claim include- Spouse (husband or wife), Unmarried daughter(s), Son(s) up to 25 years of age
To claim the benefit, the nominee or legal heir must submit:
The death certificate of the employee and a guardianship or inheritance certificate (if required).
Exemption and alternative options
Under Section 17(2A) of the Employees’ Provident Fund and Miscellaneous Provisions Act, 1952, companies can opt out of EDLI but only if they provide a group life insurance policy that offers equal or higher benefits compared to EDLI.
Why the EDLI scheme matters
The EPFO’s EDLI scheme is more than just an insurance plan, it’s a lifeline for employees’ families in times of loss. With no extra contribution required from workers, it ensures that every private sector employee’s family receives essential financial protection and dignity during a difficult time.
For millions of EPF members across India, the EDLI Scheme remains a quiet but powerful symbol of social security and trust.
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