A very bad incident happened in my friend’s house and that is his father died in an accident. When I met him again after a few days, he asked me many questions that what is EDLI in epfo? And what is its use in EPFO? What is the percentage of EDLI in PF, what is the eligibility for EDLI in case of death, what is the full form of EDLI, how is the amount of EDLI calculated, what are the charges of EDLI in EPF, and what is the limit of EPF?
Actually, he wanted to know whether his deceased father was eligible for EDLI or not. I too was very confused, but when I searched and learned more about it, I realized that EDLI is a very good scheme, especially for private sector employees. Today, I will tell you detailed information about EDLI – its meaning, eligibility, calculation, and other important things. So, let’s find out!
What is EDLI? And the full form of EDLI
The full form of EDLI is Employees Deposit Linked Insurance Scheme. It is an insurance scheme, which was started by the Government of India in 1976. EDLI is run by the Employees’ Provident Fund Organisation (EPFO), and its main objective is to provide financial security to the families of employees in the private sector. If an employee dies during employment, his family or nominee gets a lump sum amount, which provides them with financial support. I liked this a lot, because employees in the private sector often do not get social security benefits like those in the public sector, and EDLI gives them some help.
Best Salary Account in India: HSBC, Axis, ICICI, HDFC, Kotak – Which One to Choose?
Who is eligible for EDLI?
Eligibility for EDLI is very simple. If you are a member of EPFO, then you are automatically eligible for EDLI. This means, if you have an EPF (Employees’ Provident Fund) account, then you are covered under the EDLI scheme. But some key points to remember:
- Must be an EPF member: Only those employees who have an EPF account are eligible for EDLI. That is, if you are working in the private sector, and your company is registered with EPF, then you are eligible for EDLI.
- Company condition: It is mandatory for companies with more than 20 employees to register for EPF. All such companies automatically come under the EDLI scheme.
- Service period: There is no minimum service period for EDLI. You will be covered under EDLI from the first day of joining. My friend told me that in the company where his father was working, a new employee had joined recently, worked for only 2 months, and then he died in an accident, even though his family got the benefit of EDLI.
- No age condition: There is no age limit for EDLI. Whether you are 18 years old or 60 years old, you will be covered under EDLI.
Eligibility for EDLI in case of death
The main benefit of EDLI is in the case of death. But there are some conditions for this:
- Employee should be an active member of EPF: At the time of death, the employee should be an active member of the EPF scheme. That is, he should not have left the job, and his EPF account should be active.
- The cause of death can be any: EDLI is valid for any cause of death – be it an accident, illness, or natural death. But there are some exclusions – like if the death is due to suicide, intoxication, or high-risk activities (like racing), then EDLI benefit will not be available.
- Global coverage: If the employee dies outside India, his family will still get EDLI benefit. One of my relatives told me that his brother was working in Dubai, and he died there, but his family got EDLI amount.
Percentage of EDLI in PF and EDLI charges
The employee does not have to pay any contribution for EDLI – this will be paid entirely by the employer (company). But a certain percentage of the EPF goes towards EDLI. Let’s understand this:
- Employee Contribution: The employee contributes 12% of his basic salary + Dearness Allowance (DA) towards EPF. But none of this goes towards EDLI.
- Employer Contribution: The employer also contributes 12% of the employee’s basic salary + DA. Out of this:
- 3.67% goes to the EPF account.
- 8.33% goes towards EPS (Employees’ Pension Scheme) (maximum ₹1,250).
- 0.50% goes towards EDLI (maximum ₹75).
This means that the employer contributes 0.50% towards EDLI, and the limit is ₹75 per employee per month. If the employee’s salary is more than ₹15,000, then only ₹75 will be contributed towards EDLI. I think this is very good, because the employee does not have to pay anything for this – this scheme is free for him.
Avoid PF Tax with Form 15G: Know How to Fill It?
How is the EDLI amount calculated?
Calculating the EDLI amount is a bit complicated, but let me explain it to you in simple terms. As per the latest rules in 2025, the EDLI amount is calculated in two ways, and whichever is higher is given:
- Method 1 (Proportional Amount):
EDLI amount = 30 × Average monthly salary of the employee in the last 12 months (maximum ₹15,000) + Bonus amount.- Here, Salary means Basic Salary + Dearness Allowance (DA).
- Bonus amount is ₹2.5 lakh (increased from September 2020).
- Example: If the average monthly salary of an employee is ₹10,000, then:
30 × ₹10,000 = ₹3,00,000 + ₹2,50,000 (bonus) = ₹5,50,000. - If the salary is more than ₹15,000, then a maximum of ₹15,000 will be considered:
30 × ₹15,000 = ₹4,50,000 + ₹2,50,000 = ₹7,00,000.
- Method 2 (In case of continuous service):
If the employee has worked continuously for 12 months in the same company or in different companies (but with PF transfer), then:- EDLI amount = Average monthly salary (maximum ₹15,000) × 35 + 50% of the average balance in the PF account for the last 12 months (maximum ₹1.75 lakh).
Example: If the salary is ₹15,000, and the average balance in the PF is ₹2,00,000, then: - ₹15,000 × 35 = ₹5,25,000 + ₹1,75,000 (50% of the PF balance, maximum ₹1.75 lakh) = ₹7,00,000.
- EDLI amount = Average monthly salary (maximum ₹15,000) × 35 + 50% of the average balance in the PF account for the last 12 months (maximum ₹1.75 lakh).
Minimum and Maximum Amount under EDLI
- The minimum amount under EDLI is ₹2.5 lakh, and the maximum amount is ₹7 lakh (increased from 28 April 2021). This means that if the amount calculated is less than ₹2.5 lakh, you will still get at least ₹2.5 lakh, and if it is more than ₹7 lakh, you will get only ₹7 lakh.
What is the EPF limit?
The EPF limit is the limit on how much the employee and the employer can contribute to EPF. As per the rules in 2025:
- Employee and Employer Contribution: Both contribute 12% of basic salary + DA. But this contribution is calculated on a maximum salary of ₹15,000. So if your salary is ₹50,000, you will still have to contribute 12% (i.e. ₹1,800) to EPF on only ₹15,000.
- Limit for EDLI: The employer contributes 0.50% for EDLI, and this is capped at ₹75 per employee per month, irrespective of the salary.
Benefits of EDLI in epfo
There are several benefits of EDLI, which I found very important:
- Free for the employee: The employee does not have to pay anything for EDLI – the employer makes all the contributions.
- Global coverage: No matter where the employee dies in the world, his family will get the benefit of EDLI.
- Easy claim process: After the death of the employee, his nominee has to file a claim by filling Form 5 IF. This form has to be certified by the employer, and submitted to the EPF office. The claim is settled within 30 days, and if it is delayed, then 12% interest is paid.
- Minimum and Maximum Benefit: Under EDLI, a minimum of ₹2.5 lakh and a maximum of ₹7 lakh are received, which provides good financial support to the family.
EPFO Login : Members Passbook Login
How to claim EDLI?
Claiming EDLI is easy, but there are a few steps to follow:
- Fill Form 5 IF: This form has to be filled by the employee’s nominee or legal heir.
- Certification from Employer: This form has to be certified by the employer, in which he states that the employee was an active member of EPF. If the employer is not available, then the bank manager or any other authorized person can certify.
- Submit Documents: This includes death certificate, cancelled cheque, and if the legal heir is claiming, then the succession certificate.
- Submit to EPF Office: All this has to be submitted to the Regional EPF Commissioner’s office. You can also submit Form 20 (for EPF withdrawal) and Form 10C/D (for EPS) together.
When you will not get EDLI benefits?
EDLI has many advantages, but there are also some limits:
- Exclusions: If the death occurs due to suicide, intoxication, or high-risk activities, then EDLI benefit will not be available.
- Limited Coverage: Maximum ₹7 lakh is available, which can be a bit low for some families, especially if the employee’s salary is very high.
- Company Alternative Plan: Some companies may opt for their own group life insurance plan instead of EDLI, but its coverage has to be more or equal to EDLI.
Some Important Things You Must Remeber
- Keep the nominee updated: Always keep the nominee updated in your EPF account, so that your family does not face any problems after your death.
- Keep documents ready: Always keep death certificate, cancelled cheque, and other documents ready, so that the claim process is fast.
- Keep in touch with EPF office: If you face any problem in the claim process, contact EPF office.
EDLI is a very good scheme, which provides financial security to the family of employees in the private sector. I find this scheme very beneficial, as it does not cost the employee anything, and his family gets good financial support after death. If you are an EPF member, you are automatically covered under EDLI – just keep your nominee updated, and take advantage of this scheme. If you have any more questions, do not hesitate to ask me. I will explain it to you in simple terms! Take advantage of your EDLI scheme now and keep your family safe!
FAQ for EDLI in EPFO:
1. What is EDLI in EPFO?
EDLI stands for Employees’ Deposit Linked Insurance Scheme under EPFO. It provides up to ₹7 lakh insurance to the family of an EPF member in case of the member’s death.
2. Who is eligible for the EDLI scheme?
All EPF members are eligible for EDLI, regardless of age or service duration, as long as they are active employees in a company registered with EPFO (20+ employees).
3. What is the EDLI percentage in PF?
The employer contributes 0.50% of the employee’s basic salary + DA (up to ₹15,000) for EDLI, with a maximum contribution of ₹75 per month per employee.
4. What is the EDLI eligibility in death cases?
The employee must be an active EPF member at the time of death. The cause can be natural, accidental, or illness-related, but exclusions like suicide may apply.
5. How is EDLI calculated?
EDLI is calculated as 30 × average monthly salary (max ₹15,000) + ₹2.5 lakh bonus, or 35 × salary + 50% PF balance (max ₹1.75 lakh). The payout ranges from ₹2.5 lakh to ₹7 lakh.
6. What are the EDLI charges in EPF?
The employer pays 0.50% of the employee’s salary (max ₹75/month) for EDLI. Employees don’t contribute directly; it’s covered within the employer’s 12% EPF contribution.
7. What is the EPF limit?
The EPF contribution is calculated on a maximum salary of ₹15,000. Both employee and employer contribute 12% of this amount, i.e., ₹1,800 each per month.