Minimum assurance benefit under EDLI scheme

If you work in a company and are a member of the Employees’ Provident Fund (EPF), there’s some good news for you and your family! The government has made changes to the Employees’ Deposit Linked Insurance (EDLI) scheme to make sure employees’ families get fairer and more reliable support if something unfortunate happens. The amendment ensures ₹50,000 minimum assurance benefit under EDLI scheme.

What Is the EDLI Scheme?

The Employees’ Deposit Linked Insurance (EDLI) Scheme is a life insurance benefit provided by the Employees’ Provident Fund Organisation (EPFO) for private-sector employees who are members of the Employees’ Provident Fund (EPF).
Minimum and maximum benefits: The scheme guarantees a minimum insurance cover (₹2.5 lakh for service period more than 12 months, and ₹50,000 for others) and a maximum cover of up to ₹7 lakh.
No employee contribution: Only employers contribute to the EDLI fund as a small percentage (typically 0.5%) of the employee’s salary; employees do not pay anything toward this insurance.
Automatic enrollment: All employees enrolled in EPF are automatically covered by EDLI.
No minimum service period: Coverage starts from the day the employee becomes a member of EPF, with no minimum duration required.

Latest amendment in EDLI Scheme:

1. Minimum ₹50,000 assurance benefit for Every Member’s Family

If an employee dies while employed (and is an EPF member), their nominee (family) will now get at least ₹50,000, even if the average balance in their provident fund is less than that.
This means no one will get less than ₹50,000, no matter how much was saved in the account in the last year.

2. Service Gaps Don’t Cancel the EDLI benefit

Earlier, you need to have worked for 12 months continuously for your family to get this insurance.
Now, even if there’s a gap of up to 60 days between jobs (e.g., you switched jobs or were unemployed for up to 2 months), those periods will be counted together. So, small breaks won’t make you or your family ineligible for this benefit.

3. Family Gets Benefit If Death Happens Within 6 Months of Last Contribution

If you left your job but unfortunately pass away within six months (while your name is still officially on the company’s rolls), your family still gets the insurance money as per the scheme.

With these new changes, EDLI insurance is now more employee-friendly. Read more about the official notification here.