EDLI – Employees Deposit Linked Insurance Scheme

Updated on: Apr 22nd, 2024


13 min read

Uncertainties of life in the modern world have made getting adequate insurance cover imperative for every individual. This is especially important for private-sector employees who do not enjoy the same social security benefits as public sector employees. To extend the benefits of life insurance to private sector employees, the government has introduced the Employees Deposit Linked Insurance Scheme (EDLI) in 1976.

With effect from 28.04.2021, the EPFO has increased the maximum benefit to Rs.7 lakh for the registered nominees of the deceased member. 

The Ministry had increased the minimum amount of benefit to Rs.2.5 lakh on Feb 2018. However, the EPFO has further decided to continue with the same minimum benefit of Rs.2.5 lakh with retrospective effect from 15th Feb 2020.

Also, with effect from 28.04.2021, the EPFO has extended the benefit to the nominees of the deceased member who have changed their establishment for employment within a period of 12 months preceding the month of their death. 

Employees Deposit Linked Insurance Scheme

The Employees Deposit Linked Insurance Scheme or EDLI is an insurance cover provided by the EPFO (Employees Provident Fund Organisation) for private sector salaried employees who are members of EPFO. The EDLI scheme was launched in 1976. The registered nominee receives a lump-sum payment in the event of the death of the person insured (employee) during the period of the service. 

EDLI scheme covers all organisations registered under the Employees Provident Fund and Miscellaneous Provisions Act, 1952. They must subscribe to this scheme and provide life insurance benefits to their employees. This scheme works in combination with EPF (Employees' Provident Fund) and EPS (Employees' Pension Scheme). 

The objective of EDLI is to ensure that the family of the EPFO members receives financial assistance in the case of the employee's death. There is no exclusion under this scheme. The last drawn salary of the employee decides the extent of the benefit. 

Features Of Employees Deposit Linked Insurance Scheme

Here are the essential elements of EDLI, applied uniformly to all beneficiaries under the policy:

  • EDLI applies to all employees with a basic salary under Rs. 15,000/- per month. If the basic salary is above Rs. 15,000 per month, the maximum benefit is capped at Rs. 6 lakh. With effect from 28.04.2021, the EPFO has increased the maximum benefit to Rs.7 lakh.
  • The claim amount under EDLI is 35 times the average monthly salary in the past 12 months, subject to a maximum of Rs 7 lakh.
  • There is no need for the employees to contribute to EDLI. Their contribution is required only for EPF.
  • Under the EDLI, a bonus of Rs. 1,50,000/—is available. With effect from 28.04.2021, the bonus has increased to Rs.1.75 lakh.
  • The Ministry increased the minimum benefit amount to Rs.2.5 lakh in Feb 2018, which was valid for two years. The EPFO has extended this minimum amount of Rs.2.5 lakh with retrospective effect from 15th Feb 2020.
  • Any organisation that has more than 20 employees needs to register for EPF. Therefore, any employee who has an EPF account automatically becomes eligible for the EDLI scheme.
  • There are no exceptions to the insurance coverage provided by EDLI. It protects the insured person round the clock, all around the world.
  • An employer can opt for another group insurance scheme, but the benefits offered must be equal to or more than those offered under EDLI.
  • As per the provisions of the EDLI, the contribution of an employer must be 0.5% of the basic salary or a maximum of Rs. 75 per employee per month. If there is no other group insurance scheme, the maximum contribution is capped at Rs. 15,000/- per month.
  • For all calculations under EDLI, the dearness allowance must be added to the basic salary.

EDLI Scheme Eligibility

The following criteria need to be fulfilled for an employee to avail of coverage under EDLI:

  • Employees' basic salary is up to Rs.15,000. When the employee's salary exceeds Rs.15,000, the maximum benefit paid under the EDLI will be Rs.7 lakhs.
  • The employee's organisation should have more than 20 employees to opt for the EDLI scheme.

Documents Required To Payout Under EDLI

To process the claim under EDLI, the following documents are to be submitted by the claimant: –

  • Duly completed Form 5 IF
  • Death Certificate of the insured person.
  • Succession Certificate in case the legal heir files the claim.
  • Guardianship Certificate if the claim is filed on behalf of a minor by a person other than the natural guardian.
  • Copy of cancelled cheque for the account in which the payment is to be received.

Benefits Of EDLI Scheme

  • The EDLI scheme gives free insurance coverage to an employee's family members in the event of his/her death during the term of active service.
  • The employer's contribution towards EDLI is minimal, but the benefit paid under the scheme is significant to assist the deceased employee's family financially.
  • There are no exclusions under the EDLI scheme. Thus, every employee is covered, irrespective of their designation or salary.
  • The employee's family will receive the death benefit even if the employee dies in a foreign country.
  • The EDLI scheme is an employee welfare measure promoted by employers and the government; thus, life insurance benefits are guaranteed. 
  • The EDLI scheme boosts employees' morale by giving insurance coverage to employees and securing their family members after their death. 

The chief motive of the EDLI scheme is to offer financial security to the policyholder’s (deceased person) family members. Family members mean spouses, unmarried daughters or male children up to 25 years of age. The employee cannot choose which of the three schemes, EPF, EPS or EDLI,  he/she wants to opt for, but they are transferable with any change in the job. The new employer will continue to make payments in the existing account only.  

Contribution By Employee & Employer To EPS, EPF And EDLI

The employer makes the contribution to these schemes on behalf of the employees. The employee contribution is deducted from the salary before they credit the salary. Employees themselves need not make any direct payment to these schemes. Contributions by the employee and employers are as follows

EPFO Scheme

Employee Contribution

Employer Contribution


12% of Basic + DA

3.67% of Basic +DA



8.33% of Basic + DA



0.5% (max Rs 75)

However, under Section 17 (2A) of the Employees' Provident Fund and Miscellaneous Provisions Act 1952, an employer can stop contributing to the EDLI scheme if they opt for a better employee insurance policy under a different scheme.

Calculation Of EDLI Charge

The registered nominee will receive a lump-sum payout in the event of the death of the insured person. If no nominee or beneficiary is registered, then the amount would be paid to the legal heir. With effect from 28.04.2021, the pay-out to be awarded will be calculated as under:

30 days * Average Monthly salary of the Employee for the last 12 months (capped at Rs 15,000).

Furthermore additional bonus of Rs. 2,50,000 will also be given

Total = Rs 4,50,000 (15,000*30 days) + Rs. 2,50,000 (Bonus) = Rs 7,00,000 benefit.

Therefore, the maximum payout under EDLI is capped at Rs. 7,00,000/-.

How To Claim Benefits Under EDLI

The process to be followed by the nominee or claimant to receive the amount under EDLI is as follows:  

  • The benefits can be claimed by the nominee specified by the insured person. If no nominee was registered, then the family members or legal heirs can apply for the same.
  • The deceased person should have been an active contributor to the EPF scheme at the time of his/her death.
  • EDLI Form 5 IF has to be duly completed and submitted by the claimant.
  • The claim form has to be signed and certified by the employer.
  • If there is no employer or the signature of the employer cannot be obtained, the form must be attested by any of the following:  
    • Bank manager (in whose branch the account was maintained)
    • Local MP or MLA
    • Gazetted Officer
    • Magistrate
    • Member/Chairman/Secretary of Local Municipal Board
    • Post Master or Sub-Postmaster
    • Member of the regional committee of EPF or CBT
  • The claimant must submit all the documents along with the completed form to the regional EPF Commissioner’s Office for processing of the claim.
  • The claimant can also submit Form 20 (for EPF withdrawal claim) as well as Form 10C/10D to claim all the benefits under the three schemes, EPF, EPS and EDLI)
  • Any additional documents required must be furnished at the earliest to process the claim.
  • Once all the documents are provided and the claim is accepted, the EPF commissioner must settle the claim within 30 days from the receipt of the claim. Otherwise, the claimant is entitled to interest @12% p.a. Till the date of actual disbursal.

Frequently Asked Questions

Who can receive the benefits provided under the EDLI scheme?

The nominee can avail of the EDLI scheme benefits. If an employee has not made any nomination, family members or legal heirs can avail of the benefits.

Is there a minimum service period to avail of coverage under EDLI?

No. There is no minimum service period to enrol under EDLI.

Can an employer opt out of the EDLI scheme?

Under Section 17 (2A) of the Employees' Provident Fund and Miscellaneous Provisions Act 1952, employers can opt out of the EDLI scheme when they take up a higher-paying life insurance scheme for their employees.

Can an employee opt for a higher insurance coverage amount under the EDLI?

No, an employee cannot opt for higher insurance coverage under the EDLI since the amount is fixed based on the employee's basic wages, dearness allowance, and retaining allowance (if any).

Can I file Form 5 IF online?

No. Form 5 IF can only be filed offline.

Where can I check my EDLI coverage amount?

You can check your EDLI coverage amount in your EPF passbook.

Are there any exceptions to providing the EDLI benefit amount?

Yes, there are exceptions to the EDLI coverage, such as the employee's death due to intoxication, suicide, or participation in hazardous activities. In such cases, the EDLI insurance benefit will not be provided to the nominee or family members.

What is the PF contribution rate for Edli?

Contribution towards EDLI will be done from the Employer's contribution to PF. Employers will contribute 0.50% towards EDLI from the PF contribution, up to a maximum amount of Rs.75.

Public Discussion

Get involved!

Share your thoughts!

Clear offers taxation & financial solutions to individuals, businesses, organizations & chartered accountants in India. Clear serves 1.5+ Million happy customers, 20000+ CAs & tax experts & 10000+ businesses across India.

Efiling Income Tax Returns(ITR) is made easy with Clear platform. Just upload your form 16, claim your deductions and get your acknowledgment number online. You can efile income tax return on your income from salary, house property, capital gains, business & profession and income from other sources. Further you can also file TDS returns, generate Form-16, use our Tax Calculator software, claim HRA, check refund status and generate rent receipts for Income Tax Filing.

CAs, experts and businesses can get GST ready with Clear GST software & certification course. Our GST Software helps CAs, tax experts & business to manage returns & invoices in an easy manner. Our Goods & Services Tax course includes tutorial videos, guides and expert assistance to help you in mastering Goods and Services Tax. Clear can also help you in getting your business registered for Goods & Services Tax Law.

Save taxes with Clear by investing in tax saving mutual funds (ELSS) online. Our experts suggest the best funds and you can get high returns by investing directly or through SIP. Download Black by ClearTax App to file returns from your mobile phone.

Cleartax is a product by Defmacro Software Pvt. Ltd.

Company PolicyTerms of use


ISO 27001

Data Center


SSL Certified Site

128-bit encryption