LigyJose Started The Discussion:
Dear All,

Can anyone please tell me whether there is any limit towards the amount that a dependant will get under EDLI. Actually, can anyone explain the EDLI scheme especially the calculation part of it with an e.g. I have seen few posts with regards to EDLI, but still I have some clarifications.

Please help!!

Ligy Jose
Posted 24th October 2007 From India, Mumbai
At my company which has Trust and deed with LIC of India for EDLI,Gratuity,Superannuation,LeaveEnchashment, and as per the Group Insurence Scheme in lieu of EDLIS,1976 with LIC,
(1)uniform coverage of Rs.62000/- for each member.
(2) AN insurence coverage with a minimum of Rs. 5000/- & Maximum Rs.62000/- (in multiplies of Rs1000/-) based on estimated PF balances,in such a way that the Insurence Coverage,shall in no case be less than what is payable under EDLIs of 1976 increased by a sume of atleast Rs.2000/-.
Posted 24th December 2008 From India, Ahmadabad
What is EDLI ?

All employees to whom the Employee's Provident Fund and Miscellaneous Provision Act , 1952 applies, have a Statutory liability to subscribe to Employee's Deposit Linked Insurance Scheme, 1976 to provide for the benefit of Life insurance to all their employees. Under the scheme as amended with effect from 24th June,2000 the insurance benefit is equal to the average balance to the credit of the deceased employee in the Provident Fund during the last 12 months, provided that where such balance exceeds Rs.35,000, insurance cover would be equal to Rs.35,000 plus 25% of the amount in excess of Rs.35,000 subject to a maximum of Rs.60,000. Thus if the lenth of service is not adequate and/ or the salary is low the average balance may be substantially less and such the benefit to the employee's family is either inadequate or non-existent.

The contribution @ 0.50% of each employee's salary is payable by the Employer to the Provident Fund Authorities.


However, under Sec. 17(2A) of the act, the employer may be exempted from consulting to this scheme, if he/she has provided for better insurance benefits through alternative scheme. LIC's Group Insurance Scheme in lieu of EDLI has been accepted as one such better alternative.


1. The premium payable by the employer is usually less than the total contribution being paid by the employer to R.P.F.C; particularly when the salary level is high and average age of the group is low.

2. Settlement of claim is quicker, LIC requires only the death certificate and the Claim Form from the employer.

3. Premium paid by the employer is treated as normal business expenses for Income-Tax purpose.


Each employee is covered for a sum assured ranging between 5,000 to 62,000 depending upon the current salary and service put in from day one irrespective of the actual balance in the Provident Fund. Alternatively every employee/ worker can be covered for a uniform sum assured of Rs.62,000.


Double accident benefit can be allowed to the extent of the Sum Assured for an extra Premium @ Rs.0.75 per thousand Sum Assured per annum. Double accident cover under all group Schemes taken together should not exceed Rs.4.5 lacs.


1. Put up notice for the knowledge of the employees that you are going in for LIC's Scheme in lieu of EDLI.

2. Apply to the Regional Provident Fund Commissioner under Sec.17 (2A) of the E.P.F. and M.P. Act 1952 to exempt you from EDLI Scheme. The application should be accompanied by the prescribed requirements including the Rules of the Proposed Group Insurance scheme. Central PF Commissioner, has authorized the R.P.F.C. to grant exemption from the 1st of the month in which the application for relaxation is submitted. LIC also offers necessary guidance to the employers for seeking relaxation.
Posted 27th December 2008 From India, Jaipur
Life insurance benefits to Pension Fund employees increased to Rs.1lakh under Deposit linked Insurance scheme (EDLI)

EDLI Scheme amended: In effect, on death during employment, Family member/nominee will get the following:
  • if Average balance is more than Rs.50,000/-
  • then Insurance Amount = Rs. 50,000/- + 40% (Excess), subject to Rs. 1,00,000/-
Find details in Life insurance benefits to Pension Fund employees increased to Rs.1lakh under Deposit linked Insurance scheme (EDLI) ~ See Yes -> Yes, ACS
Posted 30th June 2010 From India, Madras
With the consent of ANURAJ JAIN, i amend his comments to be in line with latest amendents. EDLI notified in gazatte on 18.06.2010 to enchanse the limit from Rs.62,000/- to
Posted 2nd July 2010 From India, Tiruchchirappalli
Based on the new amendment, I shall make a brief and method of calculation on EDLI.

EDLI is the abbreviation of Employees' Deposit Linked Insurance Scheme. Here deposit means average deposit in EPF. When an employee dies while in service, family will get some compensation based on his/her deposit. To get the claim, the employer has to pay 0.5% as its premium.

1. Determination of Deposit.

Average of deposit of last twelve months as well as total service, will be calculated and whichever is less being taken for the calculation.

2. Determination of Compensation.

Upto Rs. 50,000/- he will get actual. Beyond first 50,000/- he will get 40% of the rest; subject to ceiling of Rs. 100,000/-.

Eg. a) Deposit Rs. 100,000

For 1st 50000 - 50000, Next 50000 - 20000
Total - Rs. 70,000 (will get full amount as it is not more than 100,000).

Eg. b) Deposit Rs. 200,000

For 1st 50000 - 50000, Next 150,000 - 60000
Total - Rs. 110000 (will get Rs.100,000 only as it ecxeeds 100,000).

Eg. c) Deposit Rs. 300,000

For 1st 50000 - 50000, Next 250,000 - 100,000
Total - Rs. 150,000 (will get Rs. 100,000 only as it exeeds 100,000/-)

But there is better Insurance schemes with the same premium, even without cosidering the deposits. With this type of better benefits, some of the organisations are exempted from EDLI. Instead they are providing in lieu of EDLI. There are schemes which specifies more than 100,000/- for natuaral death and double benefits for accidental death.

Abbas.P.S, ITI Ltd, Palakkad 678 623.
Ph. +91 9447 467 667
Posted 21st August 2010 From India, Bangalore
I want to know that when employee is eligible for the same, How many service (minimum) required to get the benefit of the same scheme
Posted 4th September 2010 From India, Ahmadabad
EDLI is the insurance cnverage on EPF. When a PF member dies, his family will be eligible for this benefit. To get the benefit only one day attendance is required, after enrolling EPF/EDLI by filling Form 5.

Posted 5th September 2010 From India, Bangalore
Dear All I want to know that i have EDLI Policy from LIC after will be deduct admin charge in a/c 21 Or Not Pls Rpl soon.............. Sudheer
Posted 17th September 2012 From India, New Delhi
I would like to add that the Amendment of EDLI vide GOI notification dt 8.1.2011 has mandated that the calculation of benefit would be entitiled to receive in addition to his accumulation of PF,average monthly wages drawn(subject to a maximum of Rs. six thousand five hundred)during the twelve months immediately preceding the month in which he died,multiplied by twenty times or;
(ii) the amount of benefit under sub para(1),whichever is higher.
The amount in sub para (1) is the amount that was amended vide notification dt 18.6.2010 i.e. Rs.One lakh.
The impact of this amendment appears that the benefit has been revised to 6500X20= 130000.For an exempted establishment ,the insurance cover has to be equal to or exceed this amount.Thus ,the policy coverage revision appears necessary for such establishment.I invite confirmation of the above position from the experts.
Posted 30th October 2012 From India, Jabalpur
hello abbas
could you please tell me if some body dies after four moths of his job. then he is liable to this benefit or not. if yes then please help me to calculate the lumsum amount of employe
whose basic is 3000.
Posted 24th April 2013 From India, Hyderabad
Respected Sir

i went to pf regional office and the official sitting over there said that minimum twelve months of working is necessary to get the edli scheme benefit. if some body dies before twelve months then then he is liable to get only average of his paid contribution without multiplying it by 20.

please tell me whether he is right or not
Posted 24th April 2013 From India, Hyderabad
Hello Seniors

Would anybody please explain me the EDLI calculation and Maximum amount one will get in these two situation:

1. An employee dies after 5 years contribution in EPF

2. An employee dies after 6 months contribution in EPF

Dinesh Kumar
Posted 17th July 2014 From India, New Delhi
Dear Dineshkumarji,

W.e.f 08.01.2011, 20 times of salary subject to a ceiling of Rs. 1,30,000/- will be assured. Hence in both cases it may be 20 times of salary subject to a salary ceiling of Rs. 6500/.

Posted 18th July 2014 From India, Bangalore
Dear abbas ji,
Thanks for replying

But i could not understand this calculation.
An employee who worked only 5 months will get 650020=130000. But as far I know max limit is 100000. How both employee will get Same amnt. Plz explain with full details by both the formula mentioned in para 22 of the act.
Posted 18th July 2014 From India, New Delhi
Dear Dineshkumarji,

Kindly go through my above posting. From 08.01.2011 onwards, 20 times of salary is protected to all those eligible for EDLI. If the salary is above Rs. 6500/-, EDLI amount will be limited to Rs. 1,30,000/-.
Posted 19th July 2014 From India, Bangalore
Dear Seniors,

I want to know applicability of EDLI. Secondly may i know why EDLI is not applicable of Tea Industries in Assam?

Please enhance my knowledge by respoding the said question.

Posted 19th July 2014 From India, Delhi
Dear Lalithaji,

EDLI is part of EPF. Hence if there is EPF remittance, EDLI coverage should also be there. If the number of employees engaged is 20 or more, EPF coverage is statutory. If the Tea industries in Assam are not remitting EPF, kindly check with the Labour Authorities.

Posted 21st July 2014 From India, Bangalore
Dear Sir, Please tell me any direct link to know the answer realted to Assam Tea Industries.Becuse i am not getiing any link for this. Thanks & Regards, Lalita
Posted 21st July 2014 From India, Delhi
If a Employees has completed 1 year continuous service with the same employer then the remuneration that a employee is entitled is 1,30,000.
Posted 21st July 2014 From India, Mumbai
Dear friends, Rs. 1,30,000 is the maximum compensation towards EDLI for those drawing 6500/- and above as salary. If the salary is below 6500/-, compensation will also get reduced. Abbas.P.S
Posted 22nd July 2014 From India, Bangalore
Dear Abbas ji,

You have mentioned that an employee will get average of pf wages upto 6500 multiplied by 20 in death case from EDLI. Here I am attaching a notification of EDLI in which it is nowhere mentioned 20 times of pf wages. Please check and clarify

Thanks & Regards
Dinesh Kumar
Posted 22nd July 2014 From India, New Delhi
Attached Files
Shared By Cite.Community Member "dineshkumarji.dks" For Public Download
File Type: pdf EDLI 18 June 2010 amendment.pdf (90.6 KB, 73 views)
Dear Dineshkumarji,

Why do you not noticing the effective dates. In my previous postings, it is clearly stated that the effective date to get 20 times of salary as EDLI is 08.01.2011. But you are quoting a notification applicable to a prior date viz. 18.06.2010.

Posted 23rd July 2014 From India, Bangalore


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