Quick answer: EDLI (Employees’ Deposit Linked Insurance) is the life cover that comes bundled with every EPF account in India. If a member dies in service, EPFO pays their nominee a lump sum of ₹2.5 lakh to ₹7 lakh. You fund it at 0.5% of PF wages, and the employee pays nothing.
- The EDLI Scheme, 2026 was notified on 29 June 2026 and replaced the 1976 scheme.
- At the ₹25,000 wage ceiling, your EDLI cost is ₹125 a month per employee.
- A ₹50,000 minimum applies where the member had under one year of service.
- The ₹7 lakh maximum did not rise with the September 2026 ceiling change.
How does EDLI pay out after a death?
The nominee claims from EPFO. The amount depends mainly on length of service and the member’s PF record.
The employees deposit linked insurance rules changed in July 2025. Three gaps closed. The amendment was notified on 18 July 2025 and took effect the next day, as SCC Online’s note on the EDLI amendment records.
| Situation | What the nominee gets |
|---|---|
| 12 months or more of continuous service | At least ₹2.5 lakh, at most ₹7 lakh |
| Under 12 months of service | At least ₹50,000 |
| Death within six months of the last contribution, still on the rolls | Covered |
| Gap of up to two months between two jobs | Treated as continuous service |
That last row matters more than it looks. Before 2025, a break of a day or two between a resignation and a new joining date could cost a grieving family the entire ₹2.5 lakh floor. The Labour Ministry’s release on the CBT decisions describes exactly that problem.
What does EDLI cost you as an employer?
Very little. You pay 0.5% of PF wages, and EDLI admin charges have been waived since 1 April 2017.
Suppose you run a 20-person Pune team, all at or above the new ceiling. EDLI costs you ₹2,500 a month. That is ₹30,000 a year for statutory cover across the whole team.
EDLI travels in the same monthly ECR as the Employees’ Provident Fund and the Employees’ Pension Scheme, so there is never a separate registration, return or challan to manage. One filing.
A common mistake is treating EDLI as enough life insurance for a senior hire. It rarely is. A ₹7 lakh cap is small next to the annual pay of a mid-level Indian engineer, let alone a team lead. Many employers top it up with group term life insurance, which is a benefit choice, since no law requires it. Our overview of employee benefits in India shows how the two layers fit.
How does Remunance handle EDLI for your team?
Remunance includes EDLI in every monthly ECR it files as the legal employer, and keeps each employee’s nomination current on their UAN so a claim can move quickly. We also arrange group life top-ups.
If you want your India package checked for death-in-service gaps, ask an India benefits specialist.
What else do people ask about EDLI?
Is EDLI deducted from employee salary?
No. EDLI is funded only by the employer at 0.5% of wages. It never appears as a deduction on the payslip.
What is the maximum EDLI benefit in 2026?
It is ₹7 lakh. EPFO has said an actuarial valuation will follow the ₹25,000 ceiling, so watch for a revision.
Who receives the EDLI amount?
The registered nominee receives it, or the legal heirs if no nomination exists. Keeping the nomination updated on the EPFO portal spares the family extra paperwork and delay at the worst possible time.