EDLI Scheme: LATEST NEWS! Rs 7 lakh - Check Employees’ Deposit Linked Insurance Scheme benefits

The Employees’ Deposit Linked Insurance Scheme 1976 (EDLI Scheme) is an insurance scheme that provides life insurance benefits to all employees who are members of the Employees’ Provident Funds Scheme, 1952 or of PF Schemes exempted under Section 17 of the EPF & MP Act, 1952. The EDLI Scheme is supported by a nominal contribution by the employers (@0.5 per cent of monthly wages, up to the maximum wage limit of Rs 15,000).  

No contribution is payable by the employees for availing insurance cover under this Scheme. The benefits payable under EDLI Scheme have been enhanced by the Central Government.

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Benefits Enhanced Under EDLI Scheme 

The maximum benefit payable to the eligible family members of the deceased employee under the EDLI Scheme was earlier Rs 6 lakh, which has now been enhanced to Rs 7 lakh. 

The minimum assurance benefit of Rs 2.50 lakh payable under the EDLI Scheme, which was introduced with effect from February 15, 2018 for two years only, has been reinstated with effect from February 15, 2020. This is hoped to be of particular benefit to families of members who may have passed away due to the COVID-19 pandemic. 

Another beneficial provision that has been inserted in the EDLI Scheme is that with effect from April 28, 2021, the minimum benefit of Rs 2.50 lakh and the maximum benefit of Rs 7 lakh will be provided to the eligible family members of those deceased members who have continued their scheme membership and employment for a continuous period of over 12 months, but may have switched their employer / establishment during the 12 months preceding their death.  

Earlier this benefit was available only where the deceased employee, being a member of the EDLI Scheme, was in employment of the same establishment for a continuous period of 12 months preceding the month in which he died. It is expected that this shall be of particular benefit to contract employees as well as other employees who change jobs frequently. 

The beneficiaries in respect of deceased members who were not in continuous employment during the period of 12 months preceding the month in which they died shall continue to be paid benefit under the EDLI Scheme.