What is Employee Deposit Linked Insurance(EDLI)?

Because of the uncertainties of modern life, having proper insurance coverage is essential for everyone. This is especially significant for private-sector workers who do not have access to the same social security benefits as government workers. The Employees Deposit Linked Insurance Scheme (EDLI) was established in 1976 to provide life insurance coverage to private sector employees.


Employees Deposit Linked Insurance Scheme, or EDLI, is a type of insurance given by the EPFO (Employees Provident Fund Organization) for salaried employees in the private sector. All organizations registered under the Employees Provident Fund and Miscellaneous Provisions Act, 1952, can provide EDLI facilities to registered employees under EPF. This scheme works in combination with EPF and EPS. The extent of the benefit is decided by the last drawn salary of the employee.


In case of the death of an insured person during the period of the service, the registered nominee receives a lump-sum payment. If no nominee or beneficiary is registered, then the amount would be paid to the legal heir.

Features of Employees Deposit Linked Insurance Scheme:

1. Any company with more than 20 employees must register with the EPF. As a result, all EPF-registered employees are automatically eligible for the EDLI scheme.

2. Only the employer contributes to EDLI; the employee's contribution is not required.

3. According to the EDLI, an employer's contribution must be 0.5 percent of the basic wage Plus DA, or a maximum of Rs. 75/Month for every employee.

4. Employees with a basic salary+DA of less than Rs. 15,000 per month are eligible for EDLI, with a maximum benefit of Rs. 6,00,000.

5. In February 2018, the Ministry enhanced the minimum benefit amount to Rs.2.5 lakh.

Calculation of EDLI Charge:


Last drawn monthly wages (capped at Rs.15,000/- p.m.) x 30 + Bonus Amount (50% Available PF Account Balance)

Max. Bonus Can Consider  Rs.1,50,000/- and the maximum payout under EDLI is capped at Rs. 6,00,000/-.


Last drawn wages Rs.15000

Available PF Amount = 500000

Then EDLI Receivables Amount =

Last drawn monthly wages (capped at Rs.15,000/- p.m.) x 30 + Bonus Amount (50% Available PF Account Balance)

=15000*30+150000(Max.Bonus Can Consider  Rs.1,50,000)


=6,00,000 (Max. EDLI Amount)

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