Employee Deposit-Linked Insurance (EDLI) Scheme: Know What Changed

The Employees Deposit-Linked Insurance (EDLI) scheme is governed by the Employees’ Provident Fund Organisation (EPFO). EPFO members who have EPF deductions from salary automatically become eligible for EDLI. However, they do not need to contribute to the EDLI scheme, except for employers who contribute 0.50 per cent of their salary.

The scheme provides a death cover of up to Rs 7 lakh to each EPFO member. The insurance amount is paid to the member’s legal heir or the nominee. As per rules, any organisation with over 20 employees must register for EPF.

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Recent Update:

Union Labour and Employment Minister, Mansukh Mandaviya, announced extending the Rs 7 lakh insurance cover to all EPFO members, estimated to be more than 6 crore.

About EDLI

EDLI was launched in 1976 for EPFO members. In 2016, the maximum coverage was Rs 1.2 lakh for members who served an organisation for less than 12 months. A cover of Rs 6 lakh was provided to those who served 12 months and above. There was no minimum coverage.

In 2018, a minimum coverage of Rs 2.5 lakh was introduced for those who worked for 12 months or more. However, the maximum coverage amount remained the same.

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In 2021, the maximum coverage was enhanced to Rs 7 lakh for people with 12 months or longer service in one or more establishments, with no change to the minimum coverage amount. There was also no change for employees with less than 12 months of service. These rules were effective from April 29, 2021, to April 28, 2024.

The union minister has recently announced a new modification to the rules. Mandaviya said all EPFO members can avail of EDLI benefits retrospectively from April 28, 2024.