EDLI

What is EDLI ?

The Employees' Deposit Linked Insurance (EDLI) Scheme is an insurance benefit offered by the Employees Provident Fund Organization (EPFO), primarily aimed at providing financial security to private-sector employees who may not enjoy the same level of social benefits as public-sector employees. Introduced in 1976, the scheme ensures a lump sum amount to the nominee in the event of the employee’s death during the service period.

Key Features of the EDLI Scheme:

  • Eligibility: Employees with a basic salary of up to INR 15,000 per month are eligible. For those earning above INR 15,000, the maximum benefit is capped at INR 6 Lakhs.

  • Bonus: A bonus of INR 1,50,00 is provided as part of the scheme.

  • No Employee Contribution: Employees do not contribute directly to the EDLI scheme, only to the

    Employees' Provident Fund (EPF).

  • Employer’s Contribution: The employer contributes 0.5% of the employee’s basic salary, up to a maximum of

    INR 75 per employee per month. If no other group insurance scheme is in place, the total contribution is limited to a salary of INR 15,000.

  • Mandatory Registration: Organizations with more than 20 employees must register under the EPF Act, automatically making their employees eligible for EDLI.

  • Alternate Group Insurance Schemes: Organizations can opt for another group insurance policy provided the benefits are equal to or greater than those of the EDLI scheme

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