How is the EDLI scheme benefit calculated?

To know about the calculation of EDLI Scheme benefit, you should know what is EDLI scheme? What are the contribution rates of EPF, EPS, and EDLI by employee & Employer? How is the EPF, EPS, EDLI scheme contribution calculated? Here in this article, you will get the details and how the benefit under the EDLI scheme is calculated with examples.

What is EDLI Scheme?

The Employees Deposit Linked Insurance Scheme is widely known as shortly EDLI Scheme. Briefly, this EDLI scheme is a group term insurance which gives life coverage to an Employee of an organization who is a member of the Employees Provident Fund (EPF) scheme. OR you can say in other words, in case if an EPF member dies his family members/ dependents get a lump-sum amount (up to 6 lakhs) through this EDLI scheme. When you learn more about the Employees Deposit Linked Insurance (EDLI) scheme then obviously you may curious to know, how the benefit amount of EDLI scheme is calculated?

Before jumping directly into the EDLI scheme benefit calculation, we have to learn about the following things which are the basement or we can say the benefit amount of EDLI Scheme depends on these parameters.

About EPF, EPS, EDLI contributions?

  • EPF - Employees Provident Fund
  • EPS- Employees' Pension Scheme (previously called 'EFP'- Employees' Family Pension)
  • EDLI- Employees Deposit Linked Insurance
  • Employer- Organisation or company or Establishment
  • Employee- worker or staff

EPF Contribution is calculated on employee's BASIC Salary + Dearness Allowance (DA) if any, subjected to maximum Rs.15, 000/- per month. Both employer and Employee contribute to the EPF Account. EPS contribution is made by the employer and not from employee's salary or wage. Now come to the EDLI contribution. For your information, Employer contributes to the EDLI scheme on behalf of the EPF member.

What are the contribution rates of EPF, EPS, and EDLI ?

Presently, with effect from 01.6.2018, the following rates of contributions are applied by Employer and Employee.
  • EPF contribution rate for employees is 12% of their salary and the same way Employer also contributes equally the employee's Account.
  • Here Employee's 12% contribution goes directly to EPF account however the Employer's 12% share split into 2 parts. 8.33% goes to EPS and balance 3.67% goes to EPF account of the employee.
  • Contribution towards the EDLI Scheme is 0.50% which is totally payable by Employer.
  • Apart from above, Employer has to pay for EPF administration charges 0.5% (w.e.f 01.06.2018) Or Minimum Administrative charges payable per month per employer is Rs.500/-.
  • From the above, we can conclude that the
  • Total RATE of the Employee's share of contribution - 12%
  • Total RATE of the Employer's share of contribution - 13%

How is the EPF, EPS, EDLI contribution calculated with example?

Per month each employee/ EPF member of an organization gets the following benefits to their account
  • EPF - 15.67% of their salary drawn or maximum Rs.2350.00 (contribution of Employee's 12% + Employer's 3.67%)
  • EPS – 8.33% of their salary drawn or maximum Rs.1250.00 (fully contributed by Employer 8.33%)
  • EDLI- 0.50% of their salary drawn or maximum Rs. 75.00(fully contributed by Employer 0.50%)

(All above calculations are applicable on the basic salary + DA if any OR on the upper limits Rs.15, 000/- per month for both employee and employer)

For example :
  • Krisha draws salary/wages per month Rs. 16000/- (Basic Rs.12000/- + D.A Rs.2000/- + House Rent(HRA)1000/-+ Travelling Allowance Rs.1000/-)
  • Ram draws salary/wages per month Rs,25000/-(Basic Rs.14000/- + D.A Rs.6000/- + House Rent(HRA) 3000/-+ traveling Allowance Rs.2000/-)

Now let us see the EPF, EPS & EDLI monthly calculation in case of both Krishna & Ram based on their salary is drawn, as under:
In the case of Krishna, his monthly basic salary is Rs.14000/-(Basic + D.A) which is within the limit Rs.15,000/-
  • EPF contribution from Krishna's salary – Rs.1680.00 (12% of salary Rs.14000/-)
  • EPF contribution from his company - Rs. 514.00 ( 3.67%of salary Rs.14000/-)
  • EPS contribution from his company - Rs.1166.00 (8.33% of salary Rs.14000/-)
  • EDLI contribution from his company - Rs. 70.00 (0.50% of salary Rs.14000/-)

In the case of Ram, his monthly basic salary is Rs.20,000/-(Basic + D.A) which is above the limit Rs.15,000/-.Therefore
  • EPF contribution from Ram's salary – Rs.1800.00 (maximum /12% of salary limit Rs.15000/ )
  • EPF contribution from his company - Rs. 550.00 (maximum /3.67%of salary limit Rs.15000/-
  • EPS contribution from his company - Rs.1250.00 (maximum / 8.33% of salary limit Rs.15000/-
  • EDLI contribution from his company - Rs. 75.00 (maximum/ 0.50% of salary limit Rs.15000/-)

How is the benefit under EDLI Scheme calculated with example?

Previously, the lump-sum assured in the event of an EPF member death was an amount between 1.5lacs and 3.6 lacs. Presently the amount increased to minimum Rs.2.5 lakhs and maximum Rs.6 lakhs. The Eligible claim amount under the EDLI scheme is calculated 30 times of the last basic salary which was drawn by the employee before death + 50% of the average balance in the member's account or amount during the last 12 months /entire period of his/her membership whichever is lower with an upper limit of Rs.1.5lakhs as a bonus.i.e EDLI scheme claim amount = 30 x basic salary + 50% of average EPF balance in the diseased account/ maximum Rs.1.5lakhs as bonus.

Here let us see in case of Krishna and Rama, based on their above salaries, How the Claim amount is calculated under EDLI scheme?
  • Krishna's basic salary was Rs.14000/- per month and his average EPF balance is Rs.3.00lakhs in his account. Therefore the calculation of claim amount under the EDLI scheme will be
  • 30 x Rs.14000 = Rs.4,20,000/- (30 times x basic salary last drawn)
  • 50% of Rs.300000 = Rs.1,50,000/- (50% of average EPF balance Rs.3.00lakhs or maximum 1.5lakhs)
  • Total (a) +(b) = Rs.5,70,000/-
  • Thus Krishna's family is eligible to get a total EDLI claim of Rs.5,70,000/-

The same way let us calculate Rama'EDLI claim amount.
  • Rama's salary per month was Rs. 25,000/- but his basic salary was Rs.20,000/- as calculated above and average EPF balance Rs.4.00 lakhs in his account.
  • For calculation of benefit under EDLI scheme, the basic salary will be countable and the limit is a maximum of a Rs.15000/-per month. Therefore we have to take Rama's basic salary of Rs.15,000/- per month. Then the calculation of claim amount under the EDLI scheme will be
  • 30 x Rs.15000 = Rs.4,50,000/- (30 times x basic salary last drawn)
  • 50% of Rs.400000 =*Rs.1,50,000/- (50% of average EPF balance or maximum 1.5lakhs )
  • Total (a) +(b) = Rs.6,00,000/-
  • (*Here the 50% of EPF balance is Rs.2,00,000/-. Since the upper limit under Average Balance is Rs.1,50,000/-, we have to calculate the claim benefit based on Rs.1,50,000/-only)
  • Thus Ram's family is eligible to get a total EDLI claim of Rs.6,00,000/-

Note: Contents and calculations in this article are for readers knowledge purpose only and not for any claim reference. Always use circular/public notice reference from the official site for claim purpose. For EDLI Scheme benefit you can refer the circular link:


Guest Author: tej singh23 Mar 2019

How to calculate 15000, 6 months working - please calculate the EDLI amount.

Author: kb29 Nov 2019 Member Level: Gold   Points : 12

As per the EPFO circulars available in the link:,
the EDLI Scheme benefit calculated is (The average monthly salary or wages paid to the deceased during the twelve months preceding the month in which he/she died x 30) + (50% of the average balance in the EPF Account).

As per the query, for 6 months working @ basic wages/salary Rs.15000/per month of a deceased employee and the EDLI Scheme benefit calculation is

(1) Rs. 7500 x 30 = 2,25,000/-
(2) Rs.14100x50% = 7050/- + interest if any
EDLI benefit Total (1) + (2) = Rs.2, 32,050/- appx.
Note: Minimum benefit shall be Rs.2,50,000/- as per the official circular of EPFO dtd. 21.02 2018 (as mentioned in the above link for your reference) and pension will be applicable to his/her dependents/nominees.

For your reference, the calculation is as under
(1)The deceased worked for 6 months @ basic paid salary of Rs.15,000/-.
Based on this amount, the calculation of the basic average monthly salary of 12 months is
Rs.15000x6)/12 months = 90000/12 this comes to Rs.7500 per month.

(2) Monthly EPF contribution of deceased is Rs.1800/- (12% of 15000) +
Monthly EPF contribution by company/ Employer is Rs.550.00 (3.67% of 15000/-)
Total contribution to the deceased employee's account =Rs.2350/- per month (Rs.1800/- + 550/-)
Therefore the average balance in EPF account of the deceased employee (for 6 months) is 2350x6months = Rs.14100 (50% of 14100= Rs.7050)

Note: The above calculation amount will change if the deceased employee's monthly paid salary differs/ less than Rs.15,000/- due to his absenteeism. In that case, you should calculate the amount accordingly by adding the 6 months actually paid salary (Basic salary + D.A if any)

(This calculation is only as per my understanding based on the EPFO circular. The final claim is applicable depending upon the EPFO/ EDLI scheme terms & conditions and their authorities. Because this kind of claim (below one year service) never came to my knowledge. But I personally handled my brother's claim, who was in service for more than 15 years. His dependents got the claim EDLI benefit of 6 lakhs without any problems.

Guest Author: RD06 Jul 2020

Is it that this Rs.6,00,000/- was from 2016 to 2018 only and thereafter the extension has not been given and so we have to consider the old limit of Rs.2,50,000/- (Max)?

If yes, please show the working as per old calculation.

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