What is Employees Deposit Linked Insurance (EDLI) Scheme?
Ans – The Employees Deposit Linked Insurance (EDLI) is an insurance scheme covered by the Employees’ Provident Fund Organization (EPFO). A nominee or legal heir of an active member of EPFO gets a lump sum payment of up to ₹ 6 Lakhs in case of death of the member during the service period. Government has introduced the EDLI Scheme in 1976.
· Eligibility criteria to avail the benefits of EDLI Scheme
1. Employee’s earning (Salary) should be Rs 15,000/- or less each month,
2. Employee should be an EPFO member.
3. Members of the family (Nominees) of Employee nominated under EPF Scheme.
4. Guardian of a minor nominee/family member/legal heir can claim only for EDLI scheme.
Note 1: There is no need for the employees to contribute to EDLI. Their contribution is required only for EPF.
Note 2: Any employee who has an EPF account automatically becomes eligible for the EDLI scheme.
Basic salary + DA or a maximum of Rs. 75 per employee per month.
Note 3: As per the provisions of the EDLI, the contribution of an employer must be 0.5% of the
Note 4: There is a bonus of Rs. 1, 50,000/- available under the EDLI.
Note 5: 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.
Note 7: for avail EDLI scheme benefits Member of Employee will submit Documents to regional
Note 6: There is no minimum service period for availing EDLI benefits.
EPF Commissioner’s Office. Document is such as Death Certificate, Guardianship certificate, Succession certificate, cancelled cheque with Form 5 IF.
Note 8: 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.
Calculation of EDLI Amount