EDLI, or Employees’ Deposit Linked Insurance, is a life-insurance cover that comes free with EPF membership. If a member dies while still in service, their nominee receives a lump-sum insurance payout on top of the EPF and EPS balances. The employee pays nothing for it; the premium is entirely an employer cost.

Who pays, and how much

The employer contributes 0.50% of monthly wages towards EDLI, calculated on wages up to the statutory ceiling. That ceiling rose from Rs 15,000 to Rs 25,000 on 17 September 2026, which most advisers read as lifting the maximum from Rs 75 to Rs 125 per member per month, though EPFO’s own guidance on the EDLI cap was still awaited when this page was updated. There is no EDLI administrative charge. Employers running an approved group life policy with at least equivalent benefits can seek exemption from the EPFO scheme, but most simply pay the 0.50%.

What the nominee receives

Under the EDLI Scheme, 2026, which replaced the 1976 scheme in June 2026, the benefit is linked to the last 12 months’ average wages, with a bonus component and a floor and ceiling set by the scheme. In broad terms it works out to 35 times the average monthly wages (capped at the ceiling wage) plus a bonus of up to Rs 1,75,000, subject to a minimum assured benefit of Rs 2,50,000 and a maximum of Rs 7,00,000. The higher wage ceiling has not lifted that Rs 7,00,000 maximum so far, so do not assume the cover has grown with it. The exact figure depends on the rules in force on the date of death, so treat any number as indicative.

Frequently asked questions

Do I have to enrol for EDLI separately?

No. Every EPF member is automatically covered. There is no form to fill and no health check.

Does EDLI pay out if the member dies after leaving the job?

The cover is for death in service. There is limited continuation cover for a short period after leaving in some circumstances, but the benefit is designed for members who are still contributing.

Who receives the EDLI payout?

The EPF nominee on record. This is why keeping the nomination current, now done as an e-nomination on the member portal, matters just as much for EDLI as it does for the provident fund balance itself.

The EDLI Calculator works out the assured benefit for a given wage, and the PF Calculator shows the full employer contribution including the EDLI slice. For how death-in-service dues are handled overall, see our note on full and final settlement.