In India’s evolving social security landscape, the Employees’ Deposit Linked Insurance (EDLI) scheme remains one of the most powerful yet underutilized benefits available to salaried employees. Governed by the Code on Social Security, 2020, EDLI provides a lump-sum life insurance payout to the nominee of an EPF member who dies while in service.
This blog explains how EDLI works, who qualifies, how to claim it, and what employers must do to stay compliant.
What Is EDLI?
EDLI is a statutory life insurance benefit linked to the Employees’ Provident Fund (EPF). It ensures financial protection for the family of a deceased employee—without requiring any premium from the employee.
- Benefit Type: Lump-sum insurance payout
- Payable To: Nominee/legal heir
- Trigger: Death of EPF member while in service
EDLI Calculation Formula (2026 Update)
The insurance amount is calculated as:
EDLI = (20 × Average Monthly Basic + DA) + ₹2,50,000
- Maximum Benefit: ₹7,00,000
- Minimum Benefit: ₹2,50,000
- No Premium Required: Fully employer-funded via EPF contributions
Employers must ensure EDLI contributions are made along with EPF deposits.
Eligibility Criteria
To qualify for EDLI benefits:
- The employee must be an active EPF member
- Death must occur during employment (not post-retirement or after resignation)
- PF account must be active and linked to UAN
Documents Required for Claim
The nominee/legal heir must submit:
- Death Certificate
- Aadhaar & Bank Details
- PF Member Details (UAN, EPF number)
- Employer’s Certification (Form 5(IF))
Claim Process (Step-by-Step)
- Form 5(IF) submitted by nominee
- Employer verifies and forwards to EPFO
- EPFO processes the claim
- Payment credited to nominee’s bank account
Claims are processed via the Unified Portal and tracked digitally.
When EDLI Is Not Payable
EDLI benefits are not available in the following cases:
- Employee is not an EPF member
- Employee has resigned or retired
- PF account is inactive or dormant
- Death occurs after separation from service
Legal Compliance for Employers
Under the Code on Social Security, 2020, employers must:
- Ensure EDLI contributions are deposited monthly
- Maintain updated nominee records
- Assist families with Form 5(IF) and certification
- Avoid delays in PF settlements, which may trigger penalties
Failure to comply may result in penalties, interest, and prosecution under EPF and Social Security provisions.
Disclaimer: This blog is for educational purposes only. EDLI benefits and PF procedures may vary based on EPFO notifications and state-specific rules. For case-specific advice, consult a certified Labour Law Consultant or practicing advocate.