What is the Employees Deposit Linked Insurance (EDLI) Scheme?

About Employees Deposit Linked Insurance (EDLI) Scheme:

• EDLI is an insurance scheme that was launched by the Government in 1976.
• This scheme was launched with the objective of providing social security benefits to the employees of the private sector for whom such benefits were not commonly provided by the employer.
• The EDLI scheme is managed and administered by the Employees Provident Fund Organisation (EPFO), and the scheme provides term life insurance cover on the life of the member employee.
• The EDLI scheme covers all organizations registered under the Employees Provident Fund (EPF) and Miscellaneous Provisions Act, 1952. 
• This scheme works in combination with the EPF and the Employees' Pension Scheme (EPS).
• The extent of the benefit is decided by the last drawn salary of the employee.
• The registered nominee of the EDLI scheme receives a lump-sum payment in the event of the death of the EPF member, during the period of the service.
• The nominee registered in the EDLI is the same as registered in the EPF Scheme.
• Features:
  • Maximum assured benefit up to Rs 7 lakh to be paid to the nominee or legal heir of the EPF member if death occurs while in service.
  • Minimum assurance benefit is of Rs 2.5 lakh in case the deceased member was in continuous employment for 12 months prior to his or her death.
  • This life insurance benefit being given to the EPFO member is free of cost for the PF/EPF account holders.
  • Minimal contribution by employer at 0.5% of employee's monthly wages, up to wage ceiling of Rs 15,000; no contribution made by employee.
  • Auto-enrolment of PF members in the EDLI scheme.
  • Benefit directly credited to the bank account of a legal heir or nominee.