Employees Deposit Linked Insurance (EDLI) Scheme offers life insurance cover of up to Rs 7 lakh to Employees Provident Fund (EPF) members. This cover comes at no cost to the employee, as the employer pays the contribution. If an EPF member dies while in service, the registered nominee or legal heir gets the benefit directly in the bank account.
EDLI Scheme 2026 has replaced the old EDLI Scheme, 1976 from June 29, 2026. The new scheme keeps the Rs 7 lakh maximum cover and adds a separate assurance benefit linked to the PF balance, along with faster claim settlement. This article explains the details, the benefits and how to apply for the EDLI claim.
What is Employees Deposit Linked Insurance Scheme 2026
EDLI is an insurance benefit provided by the Employees Provident Fund Organisation (EPFO) for private sector salaried employees. The scheme works along with the EPF and the Employees Pension Scheme (EPS). The extent of the benefit depends on the last drawn salary of the employee.
The registered nominee of the EDLI scheme receives a lump-sum payment in case of the death of the EPF member during the period of service. The nominee registered under EDLI is the same as the one registered under the Employees Provident Fund (EPF) Scheme.
Key Features of EDLI Scheme
The EDLI scheme comes with a set of features that make it a useful safety cover for every EPF member and the family.
- Maximum assured benefit of up to Rs 7 lakh is paid to the nominee or legal heir if the EPF member dies while in service.
- Minimum assured benefit of Rs 2.5 lakh is paid if the member was in continuous employment for 12 months before death.
- Employer contributes 0.5% of the employee's monthly wages up to the wage ceiling of Rs 15,000.
- No contribution is paid by the employee for this cover.
- EPF members are auto-enrolled in the EDLI scheme.
- Benefit is credited directly to the bank account of the nominee or legal heir.
What Changed in EDLI Scheme 2026
The new EDLI Scheme 2026 brings several changes for EPF members and their families. The maximum insurance cover of Rs 7 lakh stays, but the scheme adds a new assurance benefit linked to the employee's average PF balance. If the average balance is more than Rs 50,000, the family gets Rs 50,000 plus 40% of the amount above Rs 50,000, capped at Rs 1 lakh.
Claims under the new scheme must be settled within 20 days. If a complete claim is not processed in time without a valid reason, 12% penal interest is charged. The scheme also covers a member who dies within six months of the last EPF contribution while still on the employer's rolls. A 20% enhancement in benefits applies under specified provisions of the scheme.
How to Apply for EDLI Scheme Claim
For claiming the insurance benefit, the nominee or legal heir needs to submit the claim form. The claim can be filed online through the EPFO member portal or through the employer.
STEP 1 - Fill the EDLI claim form (Form 5IF) with the required details of the deceased member and the nominee.
STEP 2 - Submit the filled form to the employer or directly to the EPFO office along with the required documents.
STEP 3 - The claim is processed by the EPFO and the benefit is credited directly to the bank account of the nominee or legal heir.
Benefits of Employees Deposit Linked Insurance Scheme
Besides the insurance cover, the EDLI scheme, which is available to every Provident Fund (PF) account holder, provides other benefits as well.
- Maximum assured insurance benefits: The legal heir of a PF account holder gets up to Rs 7 lakh in case of the demise of the EPF member in service. The cap was raised from Rs 6 lakh to Rs 7 lakh in April 2021.
- Minimum assured benefits: These amount to Rs 2.5 lakh if the employee was in continuous service in the 12 months before death.
- Free benefits: Employees do not pay any premium to get benefits under the EDLI scheme. The employer pays the premium, which is 0.50% of the monthly wages with a ceiling of Rs 15,000.
- Auto-enrolment: EPFO subscribers need not register separately for the EDLI scheme. They become eligible for it upon becoming members of the EPFO.
- Direct Bank Transfer: The benefits under this plan are linked directly to the nominee's bank account or that of the employee's legal heir. In case of the EPF account holder's demise, these are transferred directly to the linked bank account.
EDLI Scheme Highlights
| Detail | Information |
|---|---|
| Scheme Name | Employees Deposit Linked Insurance (EDLI) Scheme |
| Launched By | Employees Provident Fund Organisation (EPFO) |
| Beneficiaries | EPF members and their legal heirs / nominees |
| Maximum Benefit | Rs 7 lakh |
| Minimum Benefit | Rs 2.5 lakh |
| Contribution | Employer pays 0.5% of wages |
| Application Mode | Online claim through EPFO portal |
About EPFO - https://www.epfo.gov.in/insurance-scheme-edli/
For more details on the EDLI scheme, visit the official EPFO page at https://www.epfo.gov.in/edli-scheme/. EPF members can also check their EPFO pension passbook and statement online through the UMANG app.
FAQ's
What is the maximum benefit under EDLI?
The maximum assurance benefit under the EDLI scheme is Rs 7 lakh, which is paid to the nominee or legal heir in case of the death of the EPF member while in service.
Who pays the EDLI contribution?
The employer pays 0.5% of the employee's monthly wages up to the wage ceiling of Rs 15,000. The employee does not pay any contribution for this cover.
Is EDLI payable after retirement?
No. The EDLI benefit is admissible only in case of the death of the member while in service. It is not payable after retirement.
How can one claim EDLI benefits?
The EDLI benefit is payable to the persons eligible to receive the EPF dues. The nominee or legal heir needs to submit the claim form, which is processed by the EPFO and credited to the bank account.