EPFO EDLI Death Benefits

Last Updated : June 9, 2025, 3:33 p.m.

The EDLI stands for Employees Deposit Linked Insurance scheme that is a part of EPF and MP Act 1952. Under this scheme, the employees get insurance covers who are working in a private sector company. All the employees who have a basic salary under ₹15000 per month are eligible for this scheme. So the EPFO has increased the death benefits of the EDLI scheme to ₹7 Lacs that was earlier ₹6 Lacs. Now the insurance company will pay the insurance benefits to the nominee of the subscriber if the subscriber dies during his employment and the EPFO EDLI Death Benefits has increased to ₹7 Lacs. Let’s go through the claim process and other rules.

What is the EDLI Scheme?

The EDLI scheme, introduced under the Employees' Provident Funds and Miscellaneous Provisions Act, 1952, is a mandatory life insurance program for employees who are members of the EPFO. It ensures financial assistance to the family or nominee of a deceased employee, providing a lump-sum payout to support them during a difficult time. The scheme is funded by employer contributions, with no direct contribution required from employees.

Points to Remember of EDLI Death Benefits

• The Minimum death insurance has been increased to ₹2.5 Lacs by EPFO.
• Earlier the minimum death insurance benefit was ₹2 Lacs.
• The Maximum death insurance has been increased to ₹7 Lacs by EPFO.
• Earlier the maximum death insurance benefit was ₹6 Lacs.
• The insurance benefit will be given to the nominee or the legal heir on the death of the subscriber during his employment.
• EDLI Death Benefit shall only be payable if:-
  • The employee was a member of EPFO
  • A Provider fund is exempted under Section 17 of EPF and MP Act 1952.
  • The employment in the company was for a continuous period of 12 months preceding the month in which he died.

How to Claim for the EDLI Death Benefits

If the employee dies during his employment then the family or the nominee gets a benefit of up to ₹7 Lacs as per the EDLI scheme and a monthly orphan/child/widow pension as per the EPS scheme. On the other hand, the family, minor, or lunatic can also claim for the provident fund withdrawal using the EPF Form 20 with Form 5 IF.

You can attest the form by any of the following if in case there is no employer’s signature or you are unable to obtain the employer’s signature:-

• Local MP or MLA
• Gazetted Officer
• Magistrate
• Member/Chairman/Secretary of the Local Municipal Board
• Member of the Regional Committee of EPF or CBT.

Eligibility for EDLI Scheme

• Employees who are getting a salary of below ₹15000 per month are eligible for this scheme.
• The contribution of the employer must be 0.5% of the basic salary or a maximum of ₹75 per month.
• If in case the employer doesn’t have group insurance then the maximum insurance is limited to ₹15000 per month.

Calculation of EDLI Death Benefits

The EDLI benefit amount is calculated based on the employee's average monthly wages in the last 12 months of service, subject to a wage ceiling of ₹15,000 per month. The formula is as follows:

• Basic Benefit : 30 times the average monthly wages (up to ₹15,000) in the last 12 months.
• Bonus Amount : An additional bonus of up to ₹1,50,000, depending on the wages and service period.
• Maximum Cap : The total benefit is capped at ₹7 lakh.
• Minimum Benefit : A minimum of ₹2.5 lakh is assured, even if the calculated amount is lower.

Example :

• If an employee’s average monthly wage is ₹15,000:
  • Basic Benefit = 30 × ₹15,000 = ₹4,50,000
  • Bonus Amount = ₹1,50,000 (maximum)
  • Total Benefit = ₹4,50,000 + ₹1,50,000 = ₹6,00,000 (within the ₹7 lakh cap)

If the calculated amount is below ₹2.5 lakh, the minimum benefit of ₹2.5 lakh is paid.

Conclusion

As you can see that a lot of people have died due to Covid-19 so the EDLI Death Benefits might help the families of the deceased. The nominee of the deceased can claim for the insurance benefit and in the absence of the nominee, the legal heir is entitled to do so. It is really a nice opportunity for the employees of the private sector to spread this information and help the families of the deceased member.