Benefits of EDLI scheme for the family of EPF Members


Do you know what this EDLI scheme is? How is it related to EPF Member and their dependent? Who will subscribe to EDLI Scheme? Who is eligible to get the EDLI Scheme benefit? What are the procedures to get the lump sum amount? You will get all about the EDLI scheme here in this article below.

What is the EDLI Scheme?

EDLI Scheme is the short form of the Employees' Deposit Linked Insurance scheme which came into force in August 1976. It is a group term insurance policy, as a part of the Employees Provident Fund (EPF), which give life cover to the employees working in an organization, to a maximum amount of Rs. Six (6) lakhs. It is a social security scheme introduced by Government of India. This Scheme is benefited to all staffs and workers of an organization covered under EPF Act 1952 irrespective of their gender or salary.

Who will pay for the EDLI scheme?

It is the responsibility of the employer (organization) to contribute to the EDLI scheme on behalf of each employee. EDLI Scheme contribution is clubbed with employee provident fund (EPF) and employee pension scheme (EPS). Every month Employer (organization) has to contribute EPF 3.67% + EPS 8.33%+EDLI 0.5%+administration charges as applicable along with Employee's (working members') 12% EPF contribution that deducted from their basic salary.

EDLI scheme benefits for EPF Member and their dependent

The most surprising thing is that 70% of the EPF member /contributors do not even know they also get the benefit of life insurance coverage up to 6lakh. For your information, all employees who join the Employees' Provident Fund (EPF) are automatically covered by and eligible for the EDLI. Therefore during the unfortunate death of the EPF member, the nominee/dependent can claim the insured amount with the help of the organization, where the deceased worked.

Who is eligible to get the EDLI scheme benefits?

It is important to note EDLI scheme benefit is applicable to an employee who was a member of this scheme at the time of his/her death or in other words, member's death happened while in service period before completing 58 years. No matter where and when the employee's death happened and whether the employee was on duty hours or non-duty hours. Because the EDLI scheme coverage is for 24 hours regardless of employee's gender. When an employee completes 58 years he/she is not eligible for EDLI scheme.

How to get the EDLI scheme benefit?

What are the Procedures to Claim EDLI Amount? After the death of an eligible employee, his/her nominee and dependent will get the EDLI benefit. The nomination made under EPF scheme will be applicable for EDLI scheme also and the scheme benefit will be paid to related nominee/ dependents. For claiming the benefit under EDLI scheme nominee and dependent of the deceased employee have to fill the required application form with the help of employer/ organization where the deceased worked and submit to the concerned dept. along with copies all necessary documents.
Note: You can submit the claim form along with the Provident Fund (EPF) and Pension (EPS) withdrawal benefits forms as it will ease the EDLI scheme benefit claim process at once. Now only one combined form (EPF, EPS, and EDLI) is used for a death claim.

Claim benefit under the EDLI scheme

Presently, the nominee/dependent of the deceased family gets maximum claim amount Rs.6 lakh (previously it was Rs.3.6 lakh) and minimum claim amount Rs.2.5 lakh (previously benefit was Rs 1.5 lakh). The eligible claim amount calculates on the basis of basic salary lastly drawn, before the death of the employee and average EPF balance amount in the account. For more details about the EDLI calculation, you can refer to how the benefit amount of EDLI scheme is calculated?

Important points

  • All employees who are the members of Employees' Provident Fund (EPF) are automatically getting covered under the EDLI scheme.
  • Employer or organization contributes to the EDLI scheme on behalf of the EPF member.
  • EDLI scheme is for 24 hours coverage, irrespective of place or gender or death cause of the member.
  • The benefit assured under the EDLI scheme is minimum Rs.2.5 lakh and a maximum of Rs.6 Lakh.
  • EDLI Scheme benefit is calculated on the basis of salary last drawn, before death(basic salary + DA) and
  • The salary upper limit for the EDLI Scheme calculation is Rs.15000/- per month.
  • The upper age limit for the EDLI scheme benefit is of 58years.
  • The nominee name (s) registered under the EPF Scheme is applicable for the EDLI Scheme also.


Note: In case of any claim, readers always cite the references from the official site of the organization. You can also refer to the following circular links;
  • https://epfindia.gov.in/site_docs/PDFs/Downloads_PDFs/EDLI_1976.pdf
  • https://epfindia.gov.in/site_docs/PDFs/Circulars/Y2017-2018/EDLI_Amendment_GSR_AssuranceBenefits_26694.pdf


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