Last Updated on October 28, 2025
The concept of Employees’ Deposit Linked Insurance (EDLI) Scheme is one of the major social security benefits which is provided under the Employees’ Provident Fund (EPF) structure in India. While most of the employees are aware and active regarding the Provident Fund (PF) and Employees’ Pension Scheme (EPS), many are not familiar or aware of the EDLI scheme, which is an important safety net for the families of the employees in case of their untimely death during service.
This blog will help you understand what the EDLI scheme is, how it works, its eligibility, benefits, calculation method, claim process, and other important elements.
What is the Employees’ Deposit Linked Insurance (EDLI) Scheme?
The concept of the EDLI Scheme was launched in 1976 by the Employees’ Provident Fund Organisation (EPFO) under the Employees’ Provident Funds and Miscellaneous Provisions Act, 1952.
The primary objective of the scheme is to provide an approximation. or lump sum amount of insurance benefit to the family (who is the nominee or legal heir) of an EPF member in the event of the member’s death while in the active or present service…!
In simple words, EDLI acts as a life insurance cover linked to the employee’s EPF account, where the benefit amount depends on the employee’s last drawn salary and the accumulated balance in the Provident Fund account.
Applicability of the EDLI Scheme
The EDLI scheme applies to all establishments covered under the EPF Act, 1952.
- It is mandatory for every organisation with 20 or more employees to subscribe to the EPF, EPS, and EDLI schemes.
- However, even smaller establishments can voluntarily opt for these schemes.
- All employees who are EPF members are automatically covered under the EDLI scheme, without any separate application or contribution from the employee.
Contributions under EDLI Scheme
One of the biggest advantages of EDLI is that employees do not have to pay anything towards it. The entire contribution is made by the employer.
Here’s how the contribution works:
- Employer’s contribution: 0.5% of the employee’s monthly basic salary + dearness allowance (DA) is paid towards the EDLI scheme.
- Wage ceiling: The contribution is calculated on a maximum salary limit of ₹15,000 per month.
- Maximum contribution amount: 0.5% of ₹15,000 = ₹75 per month per employee.
- No contribution from employee: The employee pays nothing towards the EDLI scheme.
In addition to this, the employer also pays administrative charges to maintain the account, though these are minimal.
Eligibility for EDLI Benefit
To be eligible for the EDLI benefits, the following conditions must be met: –
- The deceased employee must have been a member of the EPF at the time of death.
- The death must have occurred or the event of death while the employee was still in service (i.e., before retirement, resignation or termination).
- The nominee registered under the EPF account is eligible to claim the benefit.
- If there is no nominee, the legal heir (spouse, children, or dependent parents) can claim the insurance amount.
Even if the employee had not completed a minimum service period, the nominee/legal heir is still entitled to receive the EDLI benefit.
EDLI Benefit Amount: How it is Calculated
The benefit amount under the EDLI scheme is linked to the employee’s last drawn salary (Basic + DA).
As per the latest notification by the EPFO (effective from April 2021):
- The insurance benefit payable is 35 times the average monthly salary (Basic + DA) drawn in the last 12 months, subject to a maximum of ₹15,000 per month.
- Additionally, a bonus amount of ₹1,75,000 is payable.
Documents Required for Claiming EDLI
To claim the EDLI benefits, the nominee or legal heir must submit the following documents to the EPF office through the employer or directly (if the employer is not operational):
- Form 5IF – Application form for claiming EDLI benefits.
- Death Certificate of the deceased employee.
- Nominee’s or legal heir’s identity proof (Aadhaar, PAN, etc.).
- Bank details (cancelled cheque or bank passbook copy).
- Proof of relationship with the deceased employee (if the claimant is a legal heir).
- Employer’s certificate confirming the employment and EPF membership details.
- EPF account number of the deceased member.
Procedure for Claiming EDLI Benefits
The process of claiming EDLI benefits is straightforward and can be done both offline and online.
Offline Process:
- Download Form 5IF from the EPFO website.
- Fill in the necessary details and attach the required documents.
- Submit the form to the regional EPF office through the employer.
- The claim is processed after verification, and the benefit amount is credited to the nominee’s bank account.
Online Process:
- If the EPF account of the deceased employee was linked with Aadhaar and UAN, the nominee can file the claim online via the EPFO Member Portal.
- Log in using the UAN credentials, go to the ‘Online Services’ tab, and choose the EDLI claim option.
- Upload documents and submit the claim electronically.
Once the EPFO verifies the claim, the insurance amount is directly transferred to the claimant’s bank account.
Processing Time
The EPFO aims to settle EDLI claims within 30 days from the date of receipt of the claim. In case of delay beyond 30 days, the claimant is eligible for interest at 12% per annum on the delayed payment.
Key Features and Advantages of the EDLI Scheme
- Automatic Coverage: No need for a separate policy or premium payment by the employee.
- Life Insurance Protection: Provides financial security to the family in case of the employee’s death during service.
- No Minimum Service Requirement: Even short-term employees are covered.
- Affordable for Employers: Only 0.5% of the employee’s salary as a contribution.
- Nationwide Coverage: Applicable to all establishments under the EPF Act.
- Hassle-free Claim Process: Simplified and transparent, both offline and online.
Conclusion
The concept of Employees’ Deposit Linked Insurance (EDLI) Scheme is an essential process yet often overlooked component of India’s social security structure. It ensures that in the unfortunate or unforeseen event of an employee’s death during service, their family receives financial support without any cost or effort from the employee’s side, so basically, it is very important for the purpose of family security.
Every salaried employee covered under the EPF Act is automatically protected by this insurance, making it an essential part of the employment benefit system. Employers should ensure timely contributions and accurate nominations, while employees must keep their EPF details and nominee information updated to safeguard their families’ interests.
In a world full of uncertainties, EDLI serves as a lifeline of security for millions of working families across India.
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