Sunday 8 March 2020

EPFO EDLI Scheme | Employee Deposit Linked Insurance | Life Insurance of Rs. 2.5 to 6 lakh for EPF members

EPFO EDLI Scheme | Employee Deposit Linked Insurance | Life Insurance of Rs. 2.5 to 6 lakh for EPF members


EPFO EDLI Scheme | Employee Deposit Linked Insurance | Life Insurance of Rs. 2.5 to 6 lakh for EPF members

EPFO (Employee Provident Fund Organisation) has increased the minimum assurance limit under EDLI (Employee Deposit Linked Insurance) scheme for its EPF members through a gazette notification dated February 15, 2018. 

EPFO has enhanced the minimum assurance benefits from existing Rs. 1.5 lakh to Rs. 2.5 lakh. Earlier the minimum assurance limit was Rs.1.5 lakh and the maximum was Rs.6 lakh. 

Now the minimum assurance benefit to an eligible employee will be 2.5 lakh and the maximum assurance benefit will be Rs 6 lakh.



Employee Deposit Linked Insurance (EDLI) Scheme

Employee Deposit Linked Insurance (EDLI) Scheme is an insurance policy to give insurance cover to the life of the employees of organised sector. 

EDLI scheme is similar to group term insurance. All the members of EPF are automatically covered under EDLI scheme. 

The assurance benefit is paid to the employee’s family in the event of the death of the employee during the service period.

Also read: Things you must know about EPF (Employees' Provident Fund)   



Features of EDLI (Employee Deposit Linked Insurance) Scheme

Following are the main features of EDLI or Employee Deposit Linked Insurance Scheme.
1. All the employees who have EPF account are automatically covered under EDLI scheme.
2. EPF members are covered from the first day of service under EDLI scheme.
3. The life insurance coverage is for 24 hours (working hours and non-working hours).
4. The scheme covers the death of the employee irrespective of the cause of death.
5. The nomination under EPF scheme will be considered for the EDLI scheme also. Therefore, one need not separately add a nominee for EDLI scheme.
6. The coverage under EDLI is directly based on the salary of the employee.
7. Premium payable is similar for all the employees irrespective of age or gender.
8. The contribution (0.5 percent of the employee’s wages) towards EDLI scheme is payable by the employer.



Contribution under EDLI Scheme

The employee will not contribute to EDLI separately to avail the benefits of EDLI scheme. Only the employer will contribute to EDLI scheme. 

The contribution by the employer is 0.5% of the employee’s salary (Basic pay + Dearness Allowance).  

The maximum contribution to be paid by the employer is capped at 0.5% of Rs.15,000 or Rs.75 per month.


Life Insurance Benefit under EDLI Scheme

Under the EDLI scheme, now the minimum life insurance benefit to an eligible EPF employee will be 2.5 lakh and the maximum assurance benefit will be Rs 6 lakh.

Gazette Notification

Please refer the Gazette Notification issued by the Government of India.
Image of Notification
EPFO EDLI Scheme | Employee Deposit Linked Insurance | Life Insurance of Rs. 2.5 to 6 lakh for EPF members




How is the Benefit under EDLI Scheme calculated?

The average monthly salary (Basic Pay + Dearness Allowances) drawn (subject to a maximum of fifteen thousand rupees), during the last twelve months preceding the month in which the employee died, multiplied by 30 times plus 50% percent of the average balance in the account of the deceased in the provident fund during the preceding twelve months or during the period of his or her membership, whichever is less. 

The minimum payable assurance benefit shall not be less than RS. 2.5 lakh and the maximum payable assurance benefit shall not exceed Rs. 6 lakh.

You may also like to read: How to withdraw EPF online through UAN?



You may also like to read: How to download EPF passbook via UMANG App?
You may also like to read: How to register EPF/PF complaint online?

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EPFO EDLI Scheme | Employee Deposit Linked Insurance | Life Insurance of Rs. 2.5 to 6 lakh for EPF members.


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