EDLI Scheme (₹7 Lakh Insurance)

What is the EDLI Scheme?

The Employees' Deposit Linked Insurance (EDLI) Scheme, 1976 is an insurance cover provided by the EPFO for private sector salaried employees. In the unfortunate event of an active member's demise during the period of employment, their registered nominee or legal heir receives a lump-sum insurance payout. The maximum benefit is capped at ₹7,00,000, and the minimum assured benefit is ₹2,50,000.

Key Features & Eligibility

• No Premium for Employees: The premium is fully paid by the employer (0.5% of basic salary, capped at ₹75 per month). The employee pays nothing.
• Default Coverage: All employees subscribing to EPF are automatically covered under EDLI.
• Active Service Requirement: The death must occur while the employee is "in service" (actively employed). It does not apply to retired members or those who have left their jobs without joining a new EPF-covered company.
• Direct Transfer: The payout is deposited directly into the nominee's bank account.

How is the EDLI Claim Amount Calculated?

The payout is entirely independent of the PF balance. It is calculated formulaically based on the employee's average basic salary drawn in the 12 months preceding death.

• The Average Monthly Salary is capped at ₹15,000. Therefore, 35 × ₹15,000 = ₹5,25,000 maximum.
• The Bonus Amount is capped at ₹1,75,000.
• Total Maximum Limit: ₹5,25,000 + ₹1,75,000 = ₹7,00,000.

2026 EDLI Framework Updates

The EPFO has modernized the EDLI rules to provide stronger safety nets for employees' families. Key framework updates include:

How to Claim EDLI (Form 5IF)

The nominee must submit Form 5IF along with the PF death claim (Form 20) and EPS pension claim (Form 10D). Ensure that e-Nomination was completed prior to the demise, as this allows the nominee to file the claims entirely online via the member portal without requiring the employer's physical signature.