EDLI (Employees’ Deposit Linked Insurance Scheme)

Meaning & Definition

The EDLI scheme is a life insurance plan offered to workers who are in the EPF (Employer Non-profit Fund) and therefore receive money if they die during employment. The money paid out is to the registered nominee.

The EDLI scheme is administered by the Employees’ Provident Fund Organisation’s EPF Act (1952).

Key Features of EDLI

• All employees in EPF are eligible for this program.
• There will not be any contributions required by employees for this insurance.
• The program will provide employers with 0.5% of the employee’s Basic Pay & DA (with no maximum limit on monthly wages).
• Provided that the employee passes away, the employer will pay their nominee(s) an insurance benefit, in a single round.
• The maximum insurance benefit that can be paid will be published by the government (currently ₹7 lakhs).

Applicable Regulations & Policies

• Regulated by the Employees’ Provident Fund (EPF) & Miscellaneous Provisions Act of 1952. 
• All EPF-registered establishments must provide EDLI coverage unless they are included in an approved alternate group insurance plan.
• Employers must remit their EDLI contributions on the same schedule as remitting their EPF contributions.