EDLI is a benefit most employees have never heard of until it matters most, the death-in-service insurance built into the EPF Scheme, paid to a nominee if an employee dies while still employed. Here’s the assured benefit amount under the current formula.

How the benefit is calculated

Under the current EDLI formula, the base benefit is 35 times the employee’s average monthly wages over the preceding 12 months, capped at a wage of ₹15,000, plus a bonus of 50% of that base amount (capped separately at ₹1,75,000), with the total capped overall at ₹7,00,000. If the employee was in continuous employment for the 12 months before death, a minimum assured benefit of ₹2,50,000 applies regardless of what the formula produces.

This is separate from both PF withdrawal and gratuity, it’s specifically a death-in-service insurance payout, and it requires the employer to have been depositing EDLI contributions on the employee’s behalf.

Frequently asked questions

Who receives the EDLI payout?

The nominee registered with the EPF account, or the legal heir if no nomination was filed, similar to how PF nomination works.

Is EDLI the same as PF balance?

No, PF balance is the employee’s own accumulated savings; EDLI is a separate, additional insurance benefit paid on top of whatever PF balance exists. Our PF Calculator covers the savings side independently.

Does every employer offer EDLI?

Any establishment covered under the EPF Act is required to provide EDLI coverage for eligible employees, though some employers substitute it with an equivalent or better group life insurance policy under specific exemption provisions.

Do I need to do anything to be covered?

Coverage is automatic for eligible employees once your employer registers you under EPF, just make sure your nomination details are up to date with your employer or on the EPFO member portal.

How does this compare to gratuity as a family benefit?

Gratuity is paid to a nominee on death in service too, but it’s calculated entirely differently, based on years of service and last drawn salary, not the EDLI formula. Our Gratuity Calculator works that figure out separately, and both can be payable together.

Does ESI provide a similar benefit?

ESI has its own separate dependent benefit structure for covered employees, distinct from EDLI, check our ESI Calculator if you need the contribution side of that scheme.