Archive · 18 Aug 2026
EPFO EDLI Scheme Offers Families Up To ₹7 Lakh
EDLI is an insurance benefit connected to an employee’s EPF account.
Eligible workers are enrolled automatically without paying extra money.
If the worker dies while still employed, the family or nominee may receive money.
The payment can be as high as ₹7 lakh.
Usually, the worker must have completed at least 12 months of continuous employment for the higher minimum benefit.
If the worker dies earlier, the minimum payment is ₹50,000.
The money is sent directly to the nominee’s or legal heir’s bank account.
The amount is based on the worker’s recent salary and an additional bonus.
Workers should keep their nomination details updated on the EPFO website.
Eligible EPF members are automatically enrolled in EDLI at no additional cost when the scheme applies to their firm.
EDLI provides a tax-exempt lump-sum payment to a nominee or legal heir if an EPF subscriber dies during service.
The payout can reach ₹7 lakh, with a minimum assurance of ₹2 lakh after at least 12 months of continuous employment.
A minimum ₹50,000 benefit applies when a subscriber dies before completing one year of continuous service.
The maximum payout is calculated using 30 times the average salary capped at ₹15,000, plus a ₹2.5 lakh bonus.
- Who
- Eligible EPF subscribers and their nominees, families, or legal heirs; the scheme is administered by the Employees Provident Fund Organisation.
- What
- The Employees Deposit Linked Insurance scheme provides a lump-sum death benefit to eligible EPF subscribers’ nominees or legal heirs.
- When
- The benefit applies when an EPF subscriber dies during service; a minimum ₹2 lakh assurance requires at least 12 months of continuous employment, while ₹50,000 applies before one year.
- Where
- Nomination details can be updated through the EPFO website, and approved benefits are credited to the nominee’s or legal heir’s bank account.
- Why
- The scheme provides financial support to a subscriber’s family after the subscriber’s death, without an additional charge to the member.
- Maximum benefit
- Up to ₹7 lakh
- Minimum assurance
- ₹2 lakh when the deceased had at least 12 months of continuous employment
- Early-service minimum
- ₹50,000 if death occurs before one year of continuous service
- Salary cap for calculation
- Average monthly salary for the last 12 months, capped at ₹15,000; dearness allowance is added to basic salary
- Calculation
- 30 times the capped average monthly salary plus a ₹2.5 lakh additional bonus
- Employer contribution
- At least 0.5% of basic salary, or a maximum of ₹75 per employee per month; where there is no other group insurance scheme, the salary contribution cap is ₹15,000 per month
- Eligible family members
- Spouse, unmarried daughters, and sons up to 25 years of age