In a major relief for employees contributing to the Employees’ Provident Fund (EPF), the government has recently made a significant decision that is being widely appreciated by working professionals across India. The update revolves around the increase in the limit of insurance benefit under the Employees’ Deposit Linked Insurance (EDLI) Scheme, which is operated by the Employees’ Provident Fund Organisation (EPFO).
Earlier, the maximum limit under this scheme was ₹6 lakh, but now, as per the new notification and recent developments, the minimum assurance benefit has been raised, and the maximum coverage continues to be up to ₹7 lakhs depending on salary and contribution patterns. This is a huge win for EPFO members and their families in terms of social security and financial support.
What is the EDLI Scheme?
The Employees’ Deposit Linked Insurance (EDLI) Scheme is an insurance cover provided by EPFO to all salaried employees who are members of the EPF. This benefit is offered to the nominee or legal heir of an employee in case of death during service, irrespective of the cause of death — whether natural or accidental.
Under this scheme, there is no need for a separate premium to be paid by the employee. The employer contributes a small portion (0.5% of monthly wages, capped at ₹15,000 per month) toward the EDLI scheme.
What’s the New Update?
As per the latest decision by the central government and EPFO:
- The minimum assurance benefit under EDLI is now fixed at ₹2.5 lakh.
- The maximum assurance benefit remains ₹7 lakh (based on a formula using last drawn salary and length of service).
- The benefit is applicable irrespective of the cause of death, and the claim process has been further simplified for faster disbursal.
The government had earlier set the minimum limit temporarily during COVID-19, but now this has been extended permanently, thereby ensuring long-term protection for workers’ families.
Overview Table: EPFO EDLI Scheme at a Glance
| Feature | Details |
| Scheme Name | Employees’ Deposit Linked Insurance (EDLI) |
| Operated By | Employees’ Provident Fund Organisation (EPFO) |
| Eligibility | All EPF members in active service |
| Premium | No premium from employee; 0.5% paid by employer |
| Minimum Benefit Amount | ₹2.5 Lakh |
| Maximum Benefit Amount | ₹7 Lakh (based on last salary and tenure) |
| Claim Beneficiary | Nominee/legal heir |
| Cause of Death | Any (natural, accidental, illness, etc.) |
| Latest Decision | Minimum coverage of ₹2.5 lakh extended permanently |
Why This Move Matters for Workers
This decision reflects the government’s growing focus on financial security and social welfare for workers in the formal sector. Here are the key reasons why this update is so important:
- Higher Security to Families: In case of the untimely death of the earning member, their family now gets a minimum ₹2.5 lakh, going up to ₹7 lakh. This can provide crucial support during emotionally and financially distressing times.
- No Extra Burden: Since employees don’t have to pay anything for this insurance benefit, it offers protection at zero cost to the worker.
- Better Awareness: With this decision, the government also aims to spread awareness about EDLI, as many employees are not even aware of this benefit despite being eligible.
- Encouragement for Formal Employment: The government continues to take steps that make formal jobs more attractive, offering social benefits that aren’t easily available in the unorganized sector.
How Can Nominees Claim EDLI Benefit?
The process is straightforward and can be done online or offline:
- Fill out Form 5 IF.
- Attach the required documents:
- Death certificate of the employee.
- Nominee/legal heir proof.
- Bank account details.
- EPF details of the deceased employee.
- Death certificate of the employee.
- Submit the form to the EPFO office or online via the Unified Member Portal.
- After verification, the amount is credited to the nominee’s bank account.
The EPFO has also been digitizing and simplifying the entire process to ensure timely disbursal of funds.
Final Words
This move to ensure a minimum ₹2.5 lakh insurance coverage under the EDLI scheme is a progressive step by the government to boost social protection for India’s working class. With lakhs of employees enrolled under EPFO, such policies help build trust, safety, and confidence in the formal employment system.
If you or someone in your family is a working professional covered under EPFO, it’s important to ensure that your nominee details are updated, so your loved ones can easily claim this benefit if ever needed.
This decision shows how small policy changes can have a big impact on people’s lives. A good step forward for workers and their families!