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      Employees’ Deposit Linked Insurance Scheme (EDLI), 1976

      Tuesday, March 6th, 2018 Amritesh 3 responses


      Employees’ Provident Fund (EPF) and Employees’ Pension Scheme (EPS) are the Social Security Welfare measures adopted by the Government in the best interest of the individuals. Employee Deposit Linked Insurance Scheme (EDLI) was launched as a Statutory Benefit applicable to all the Employees covered under the Employees Provident Fund and Miscellaneous Provisions Act,1952. EDLI is the Life Insurance cover extended to the Employees and is payable to the nominee in case of death of the subscriber while he/she is subscriber to the Fund. It is payable to the nominee in addition to the Provident Fund deposits and Pension Benefits applicable under the act. It is an assurance benefit extended to the Members of the Employees’ Provident Fund (EPF).


      The Act is extended to all the Subscribers covered under the Employees Provident Fund Scheme,1952.

      Administrative Authority

      The Scheme is administered by the Central Board constituted as per the provisions under the Act.

      Employee Coverage

      Every Employee, including the ones employed through a contractor, who is in receipt of wages/salary up to Rs 15,000 per month shall be mandatorily covered under the Scheme.

      Employees’ earning in excess of Rs 15,000/- pm may also be covered under the scheme.

      Contribution and Administration Charges

      Employer has to contribute 0.5% of the monthly Basic and Dearness Allowance of an employee to the Insurance Fund. Employee is not required to make any contribution to the Fund. Thus the maximum contribution is capped at Rs 75/-.

      In addition, 0.1% of the employee’s wages/salary subject to minimum of Rs 200/- every month has to be paid to meet the administration expenses of Deposit Linked Insurance Fund. The administration charge has been waived off since 1st April, 2017.

      The contribution has to be made till the period the EPF member is in service and contributing towards EPF.


      Nomination made under Employees’ Provident Fund Scheme (EPS) will be treated as Nomination under ELDI.

      Benefits and Amendments

      Recently, the Benefits under scheme have been revised. The maximum Insurance benefit has been increased to 6 lacs from the existing 3.6 lacs. The minimum benefits under the scheme have also been recently revised to 2.5 lacs to 1.5 lacs.

      Subscribers no longer need to work in the same organization continuously for one year to be eligible for benefits under the scheme.

      Benefits Calculation

      For the purpose of calculation of Benefits, the maximum salary ceiling has been capped at Rs 15,000/- pm.

      The claim is calculated according to the new format:-

      30 times of the Last drawn Salary (Basic + Dearness Allowance subject to the maximum salary cap of Rs 15,000/-)

      In addition, Bonus of Rs 1,50,000/-  is also provided to the nominee.

      Maximum Benefit Calculation: Rs 15,000 * 30 = Rs 4,50,000/- plus bonus Rs 1,50,000/-      

      Total Benefit = Rs 6,00,000/- (6 lacs)

      Benefit Claim

      In order to claim the benefits, Nominee needs to fill up the Form 5 IF and submit the same along with the copy of death certificate. The claim has to be settled within 30 days from the date of submission.

      Exemption Under EDLI

      U/S 17 (2A) of the Employees’ Provident Fund Act (EPF), an employer may be exempted from contributing in the scheme, provided they can avail a better alternative which provides equal or greater benefits to the employees. Employers providing Group Term Insurance with benefits equal or higher than one provided under EDLI, then also they are allowed to opt out of the scheme. However, EPFO approval is mandatory for such exemptions.

      Amritesh is an experienced professional in the field of HR, Finance and Compliance. He is currently working in the IT Industry with an US based firm. He took up Blogging as a hobby which eventually turned into passion. He primarily focuses on topics related to Personal Finance, HR, Compliance and Technology.

      All the opinions/suggestions/views expressed on this blog are just for sharing information. Readers are requested to consult their respective financial advisers and experts before taking any decision. Views shared through post or comments are personal opinion meant for reference of the readers. These should not be considered as Investment Advice or Legal Opinion. The Blog or the Author does not take any responsibility regarding any such action taken by any Individual.
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      3 Comments on "Employees’ Deposit Linked Insurance Scheme (EDLI), 1976"

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      Anoop Kumar

      Pls. tell me about date of applicability of amendment in benefit to Rs 6 lacs.



      When did this amendment in EDLI scheme is come into force??

      Though this amendment was announced in Sept-2015, Govt Gazette was published in May-2016…
      So the persons who passed away in between Sept -15 to May -16 are eligible for 3.6 lacks or 6 lacs??