EDLI Scheme 2026 vs 1976: Complete Comparison, Key Changes, Claim Timeline & Digital Compliance under Code on Social Security

On 29th June 2026, the Ministry of Labour & Employment notified the Employees’ Deposit-Linked Insurance (EDLI) Scheme, 2026 under the Code on Social Security, 2020, replacing the EDLI Scheme, 1976. This notification marks a significant milestone in India’s social security reform journey, bringing the deposit-linked insurance framework under a unified legal umbrella while retaining the core benefits that employees have relied upon for decades.

The new scheme is part of a broader modernization effort alongside the EPF Scheme, 2026 and the Employees’ Pension Scheme, 2026, all aligned with the Code on Social Security, 2020. Existing members, accumulated balances, and service continue seamlessly.

Here is a detailed comparison of what has changed, what remains the same, and what it means for employers and employees.

Comparison at a Glance: EDLI 1976 vs EDLI 2026

Particulars	EDLI Scheme, 1976	EDLI Scheme, 2026
Legal Framework	Under EPF & MP Act, 1952	Under Code on Social Security, 2020
Effective From	16 March 1976	29 June 2026
Applicability	EPF members covered under EPF Act, 1952	Employees covered under Chapter III of the Social Security Code, 2020 and eligible establishments
Contribution Calculation	On wages as per EPF Act (subject to wage ceiling)	On wages as per Social Security Code (subject to notified wage ceiling)
Rate of Contribution	Notified by Central Govt. from time to time	Notified by Central Govt. from time to time – 0.5% of wages, capped at ₹75 per employee per month
Payment of Contribution	Deposit with EPFO (mode not specifically prescribed)	Deposit electronically within 15 days from end of each month through approved banks/payment gateway/EPFO portal
Recovery from Employees	No specific provision	Employer cannot recover EDLI contribution from employees’ wages in any manner
Employer Responsibilities	Not specifically prescribed	Submit consolidated return within 15 days; upload monthly details of new joiners & leavers; assist EPFO for making payments to eligible beneficiaries
Inspection of Records	As per EPF Act provisions	Physical or electronic records to be produced for inspection by EPFO officers as and when required
Claim Settlement	No specific time limit	Claims to be settled within 20 days from the date of receipt of complete claim
Delay in Claim Settlement	No provision for interest on delay	If claim not settled within 20 days without sufficient reason, 12% p.a. interest payable on the benefit amount – recoverable from the officer responsible
Maximum Benefit	₹7,00,000	₹7,00,000 (No change)
Minimum Benefit	₹2,50,000	₹2,50,000 (No change)
Benefit Calculation	35 × Average Monthly Wages + 50% of average PF balance (Subject to min & max limits)	35 × Average Monthly Wages + 50% of average PF balance (Subject to min & max limits) – No change
Payment to	Nominee / Legal Heir	Nomination as per EPF Scheme, 2026 (Aligned with EDLI 2026)
Exempted Establishments	Certain establishments exempted under EDLI Scheme, 1976	Exemptions allowed under EDLI 2026 (Group insurance policy, returns, claim settlement, etc.)
Annual Report	Not specifically prescribed	EPFO to submit annual report of the scheme to Central Government before 20th December every year

What Has Not Changed in EDLI 2026

The core structure of the EDLI scheme remains intact, ensuring continuity for millions of employees:

Employer pays the EDLI contribution – the scheme remains fully employer-funded
No contribution from employee – employees pay nothing for this life insurance cover
Benefit payable on death while in service – the trigger event remains unchanged
Payment to nominee / legal heir
Benefit calculation formula remains the same – 35 × Average Monthly Wages + 50% of average PF balance
Benefit limits remain unchanged – Minimum ₹2.5 Lakh to Maximum ₹7 Lakh
Wage ceiling remains ₹15,000 per month – notified under Section 2(89) of the Code on Social Security
Contribution rate remains 0.5% of wages, capped at ₹75 per employee per month

What’s New in EDLI 2026

1. Legal Framework Alignment with Social Security Code, 2020

The most significant change is the shift in governing law. The EDLI Scheme, 2026 now operates under the Code on Social Security, 2020, replacing the EPF & MP Act, 1952 framework. This integration creates a more cohesive and streamlined approach to social security administration.

2. Digital Compliance and Electronic Filing

The 2026 scheme places a strong emphasis on digital compliance:

Electronic deposit of contributions within 15 days from the end of each month through approved banks/payment gateway/EPFO portal
Consolidated return to be submitted within 15 days
Monthly upload of details of new joiners and leavers
Physical or electronic records to be produced for inspection

3. 20-Day Claim Settlement Timeline

Under the new scheme, claims must be settled within 20 days from the date of receipt of a complete claim. This is a significant improvement over the 1976 scheme, which had no specific time limit.

4. 12% Interest on Delayed Claims

If a claim is not settled within 20 days without sufficient reason, 12% per annum interest is payable on the benefit amount. The interest is recoverable from the officer responsible for the delay, creating strong accountability.

5. Enhanced Employer Responsibilities

Employers now have clearly defined responsibilities:

Submit consolidated return within 15 days
Upload monthly details of new joiners and leavers
Assist EPFO in making payments to eligible beneficiaries
Maintain updated nominee records aligned with EPF Scheme, 2026 provisions

6. Exempted Establishments – Stricter Provisions

Exempted establishments can continue with group insurance policies, provided the alternative scheme offers benefits equal to or better than those available under EDLI. However, the 2026 scheme brings more detailed governance and compliance requirements for such establishments. Exempted establishments are liable to pay inspection charges at 0.005% of wages, subject to a minimum of ₹1,250 per month, as prescribed.

7. Annual Reporting

The EPFO is now required to submit an annual report of the scheme to the Central Government before 20th December every year, enhancing transparency and accountability.

8. Clearer Definitions and Administrative Procedures

The new scheme provides expanded and clarified definitions for key terms, reducing ambiguity in interpretation and enforcement.

What This Means for Employers

Requirement	Details
Contribution Rate	0.5% of wages, capped at ₹75 per employee per month (unchanged)
Wage Ceiling	₹15,000 per month (unchanged)
Payment Timeline	Electronic deposit within 15 days from end of each month
Monthly Filing	Upload details of new joiners and leavers
Consolidated Return	Submit within 15 days of scheme taking effect
Claim Assistance	Assist families with Form 5(IF) and certification
Nominee Records	Maintain updated nominee records aligned with EPF Scheme, 2026 provisions
Exempted Establishments	Alternative group insurance must offer equal or better benefits; inspection charges payable as prescribed

Failure to comply may result in penalties, interest, and prosecution under the Social Security Code provisions.

What This Means for Employees

No-Cost Life Insurance Cover

The EDLI scheme provides a lump-sum life insurance payout to the nominee of an EPF member who dies while in service. The best part: employees pay nothing for this insurance; it is fully funded by the employer.

Benefit	Details
Maximum Benefit	₹7,00,000
Minimum Benefit	₹2,50,000
Employee Contribution	Nil
Employer Contribution	0.5% of wages (up to ₹15,000 wage ceiling)
Trigger	Death of EPF member while in service
Payment To	Nominee / Legal Heir

Automatic Enrolment

All employees covered under EPF are automatically enrolled in the EDLI scheme. No separate application or registration is required.

Faster Claim Settlement

Claims are now required to be settled within 20 days from the date of receipt of complete claim. If delayed, the claimant is entitled to 12% interest per annum.

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))

Exempted Establishments: What You Need to Know

Establishments can opt for a group insurance policy in place of EDLI, provided the alternative scheme offers benefits that are equal to or better than those available under EDLI. However, the 2026 scheme brings more detailed governance requirements for such establishments.

Key points for exempted establishments:

Alternative group insurance must offer equal or superior benefits
Timely claim settlement is mandatory
Exempted establishments are liable to pay inspection charges at 0.005% of wages, subject to a minimum of ₹1,250 per month, as prescribed

Calculation of EDLI Benefit

The EDLI benefit is calculated using the following formula:

EDLI Benefit = (35 × Average Monthly Wages) + (50% of average PF balance)

Subject to minimum and maximum limits

Component	Details
Average Monthly Wages	Average of wages earned in the last 12 months of employment
Average PF Balance	50% of the average PF balance in the preceding 12 months
Minimum Benefit	₹2,50,000
Maximum Benefit	₹7,00,000

Where an employee dies before completing one year of continuous service, a minimum benefit of ₹50,000 is payable.

Key Takeaways

Aspect	EDLI 1976	EDLI 2026
Legal Framework	EPF & MP Act, 1952	Code on Social Security, 2020
Claim Settlement	No time limit	20 days
Interest on Delay	Not available	12% p.a.
Digital Compliance	Limited	Mandatory electronic filing & deposits
Employer Responsibilities	Not prescribed	Clearly defined duties
Annual Report	Not prescribed	EPFO to submit by 20th December
Benefit Limits	₹2.5 Lakh – ₹7 Lakh	₹2.5 Lakh – ₹7 Lakh (unchanged)
Contribution Rate	0.5% / ₹75 cap	0.5% / ₹75 cap (unchanged)
Wage Ceiling	₹15,000	₹15,000 (unchanged)
Employee Contribution	Nil	Nil (unchanged)

Final Thoughts

The EDLI Scheme, 2026 represents a thoughtful balance between continuity and modernization. The core benefits that millions of Indian workers rely upon remain intact, while the new framework brings much-needed modernization through:

Digital compliance – electronic filing, deposits, and record-keeping
Time-bound claim settlement – 20 days with 12% interest on delays
Enhanced accountability – clear employer responsibilities and officer liability
Transparency – annual reporting and public disclosure
Simplified administration – aligned definitions and procedures

For employees, the EDLI scheme continues to provide no-cost life insurance cover of up to ₹7 lakh; a critical financial safety net for families in the event of an untimely demise.

For employers, the statutory requirements are clear. Employers are required to ensure active digital compliance, timely filings, and assistance to claimants, as mandated under the Code on Social Security, 2020.

Disclaimer: The information provided in this article is for general informational and educational purposes only and does not constitute legal, financial, or professional advice. While every effort has been made to ensure the accuracy of the information, the provisions of the EDLI Scheme, 2026, the Code on Social Security, 2020, and any related notifications are subject to official amendments, judicial interpretations, and state-specific implementations. Employers, institutions, and individuals are strongly advised to consult qualified legal professionals, tax advisors, or certified compliance experts for specific guidance tailored to their circumstances. We do not accept any liability for any loss, damage, or legal consequence incurred as a result of reliance on the information contained herein.