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