How will the Recent Changes in the Employees' Deposit Linked Insurance (EDLI) Scheme Impact You?

tax comply
Mar 5
2 min read

🔹 Introduction

The Employees' Deposit Linked Insurance (EDLI) Scheme, 1976, is a key social security benefit under the Employees’ Provident Fund (EPF) framework. In a recent 237th Central Board of Trustees (CBT) meeting, chaired by Dr. Mansukh Mandaviya, significant modifications were made to provide better financial security to the families of EPF members.

These changes will ensure wider coverage and higher insurance payouts for families in distress.

🔹 What is EDLI?

The EDLI scheme was introduced in 1976 under the Employees' Provident Funds and Miscellaneous Provisions Act, 1952. It provides life insurance coverage to all salaried employees under EPF, ensuring a lump-sum payout to their nominee or family in case of death during service.

🔹 Key Features of EDLI

Ø Automatically available to all EPF members

Ø Employer contributes 0.5% of the employee's basic wage

Ø No employee contribution required

Ø Maximum benefit of ₹7 lakh

Ø Linked to the employee’s last 12 months' salary balance

🔹 Key Amendments in the EDLI Scheme (2025)

The CBT meeting approved three major changes in the EDLI scheme, making it more inclusive and beneficial.

1. Minimum Benefit for Short-Term Employees

🔸 Before: No insurance benefit was provided if an employee died within one year of service.

🔹Now: A minimum benefit of ₹50,000 is introduced for such cases.

💡 Impact: 5,000 families annually will now receive this benefit.

2. Coverage for Non-Contributory Period

🔸 Before: If an EPF member stopped contributing (due to job loss, transition, etc.), their family was denied EDLI benefits.

🔹 Now: If a member dies within six months of their last contribution, EDLI benefits will be paid.

💡 Impact: 14,000 additional families will receive insurance every year.

3. Service Continuity Consideration

🔸 Before: Even a one-day employment gap led to loss of eligibility for EDLI benefits.

🔹 Now: A gap of up to two months between jobs will still be considered continuous service, ensuring benefit eligibility.

💡 Impact: 1,000+ additional families will now qualify for EDLI benefits.

📊 Comparison of EDLI Benefits – Before & After Amendments

Change	Before Amendment	After Amendment
Minimum Benefit (Death within 1 Year of Service)	❌ No Benefit	✅ ₹50,000 Minimum
Non-Contributory Period (Last EPF Contribution)	❌ No Benefit after job loss	✅ Full benefit if death occurs within 6 months
Service Continuity (Employment Gap)	❌ 1-day gap disqualifies	✅ Up to 2-month gap allowed

🔹 How These Changes Impact EPF Members

✅ Greater Financial Security for Families

✅ Simplified & Inclusive Claim Process

✅ Increased Social Security Net

🔗 Stay Updated – For more details, visit EPFO's official website.