What Is EDLI? Employees Deposit Linked Insurance Scheme

    Summary:
     

    Employees Deposit Linked Insurance Scheme is a type of life insurance that is designed to be purchased through EPF accounts. If you die in the course of your employment, named beneficiaries will receive a one-time payment upon your death. Since your employer pays the premium for this policy, you can continue to receive this coverage at no cost.

    As a salaried individual who participates in the EPF Program, it is possible that you have life insurance coverage under the Employees Deposit Linked Insurance (EDLI) Scheme, even if you are unaware of it.

    Under this scheme, your family and dependants will receive monetary assistance when you pass away or become incapacitated. There is no need to purchase an additional life insurance plan or pay a higher premium to be eligible for the EDLI.

    If you are a member of the EPF Program, you will automatically qualify for this benefit. For many families in India, the Employees Deposit Linked Insurance Scheme serves as an important financial resource. By understanding how the EDLI operates, you will better understand the importance of the EDLI to your family or dependants and be able to feel confident about protecting their financial future.

    How Does the EDLI Scheme Work?

    The Employees Deposit Linked Insurance Scheme is already in place for you when your employer registers you with the EPF, so you do not have to apply or submit any other documents to be eligible for coverage under this scheme. As long as your EPF account is in operation, the EDLI cover will remain effective.

    If you, as a covered employee, die while still working, your nominee or legal heir can file a claim for the EDLI. The amount paid out will vary according to the employee's salary at the time of death and also according to the specified limits under the scheme.

    The claim will be handled through your employer and the EPFO. Once the claim documents have been checked by them, payment will be made directly to your nominated bank

    Key Features of the EDLI Scheme

    •  
    • Before looking at the features, it helps to know why Employees Deposit Linked Insurance Scheme exists. It aims to offer basic life cover to organised sector employees without adding financial burden. These features explain how the scheme keeps things simple for you.
    • Automatic coverage for EPF members: You receive EDLI coverage automatically once EPF applies, without filling separate insurance forms.

    • No employee contribution required: You do not pay anything from your salary towards EDLI. The employer handles the entire contribution.

    • Government backed insurance: EDLI operates under EPFO, which provides regulatory oversight and standardised benefits.

    • Coverage linked to salary: The insurance payout depends on your last drawn wages, subject to prescribed limits.

    Eligibility Criteria for EDLI Coverage

    To meet the EDLI Scheme eligibility requirements, you must qualify on the following grounds: 

    1. You must be a member of the EPF Scheme.

    2. You must earn up to ₹15,000 per month.

    3. Your employer must be contributing to the EPF and EDLI schemes.

    4. If you have worked for multiple employers, only the last employer’s contribution is considered for calculating the EDLI benefit.

    Remember that you are eligible for the EDLI Scheme from the date of joining the EPF scheme until the date of exit from employment.

    Benefits and Coverage Under EDLI

    Before listing the benefits, remember that EDLI focuses on financial relief, not replacement of income. It helps your family manage immediate expenses during a difficult period.

    Understanding these benefits helps you see where Employees Deposit Linked Insurance Scheme fits into your overall protection plan.

    • Financial support for family: Your nominee receives a lump sum amount, which can help manage household expenses or urgent needs.

    • No medical checks: EDLI does not require health declarations or medical tests. Coverage continues regardless of health history.

    • Cost free insurance cover: You receive life insurance benefits without paying premiums, which makes it accessible to all eligible employees.

    • Simple claim process: The claim follows a standard EPFO process, which reduces uncertainty for your family during stressful times.

    Documents Required for EDLI Claim

    Before understanding the documents, it helps to prepare your nominee in advance. Awareness reduces confusion during claim filing. These documents help EPFO verify identity, employment, and eligibility.

    • The claimant must submit the prescribed EDLI claim form, duly filled and attested by the employer.

    • An official death certificate is required to confirm the event and initiate claim processing.

    • The nominee’s bank details ensure direct and secure transfer of the insurance amount.

    • Valid identity documents help confirm the claimant’s relationship and eligibility for the benefit.

    Claim Process for EDLI Benefits

    Step 1: Inform the Employer

    Start by notifying the last employer about the employee’s death. This step is important because the employer will guide you through the claim process and provide the necessary forms.

    Step 2: Obtain Form 5 IF

    Request Form 5 IF from the employer. Fill it out carefully, including details like the deceased employee’s EPF account number, UAN, and nominee information. Ensure all information is accurate to avoid delays.

    Step 3: Gather Required Documents

    Attach essential documents with the filled-out Form 5 IF. These include:

    • Death certificate of the employee

    • Bank account details of the nominee

    • Valid ID proof of the nominee

    Step 4: Submit the Claim Form

    Hand over the completed form and the attached documents to the last employer. The employer will review the form for accuracy and verify the details.

    Step 5: Employer’s Verification

    The employer checks the form and confirms the information. Once verified, they forward the claim form and documents to the EPFO for further processing.

    Step 6: EPFO Processing and Disbursement

    The EPFO reviews the claim and verifies all submitted details. Once approved, the EPFO disburses the EDLI amount directly to the nominee’s bank account. Keep track of the claim status through the EPFO portal or by contacting the employer.


    Contribution By Employee and Employer to EPS, EPF and EDLI

    Before viewing the table, it helps to understand that Employees Deposit Linked Insurance Scheme contributions come only from the employer. You contribute only to EPF, while EPS and EDLI operate alongside it.

    Scheme

    Employee contribution

    Employer contribution

    EPF

    12 percent of wages

    3.67 percent of wages

    EPS

    Nil

    8.33 percent of wages

    EDLI

    Nil

    0.5 percent of wages

    Additional Read: EPF vs EPS

    Calculation of EDLI Charge

    The employees deposit linked insurance scheme benefit is calculated using the formula:

    EDLI Amount = 35 × Average Monthly Salary + ₹2,50,000 (Bonus)

    For example, let’s say the average monthly salary of the employee over the last 12 months is ₹12,000. If that’s the case, the EDLI amount will be:

    EDLI amount = 35 × ₹12,000 + ₹2,50,000 

    = ₹6,70,000

    Therefore, the total EDLI payout in this case would be ₹6,70,000. The maximum payout under the scheme is capped at ₹7,00,000. If the salary is lower, the payout will also be lower, but the bonus remains fixed at ₹2,50,000..

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    Published Date : 11 Jun 2026
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