EPFO subscribers can claim up to ₹7 lakh from the Employees Deposit-Linked Insurance (EDLI) scheme, with the corpus comprising a minimum employer contribution of 0.5% of basic salary or a maximum of ₹75 per month for each employee. According to reports from Mint, if there is no other group insurance scheme, the maximum contribution is capped at ₹15,000 per month. Eligible EPF members are auto enrolled in the EDLI scheme at no additional cost if more than 20 employees from a firm opt for it, with basic salary eligibility capped at ₹15,000. The payout is calculated as 30 days x average monthly salary of the employee for the last 12 months, capped at ₹15,000, plus an additional ₹2.5 lakh bonus for continuous employment of 12 months prior to death.
The EDLI scheme provides a minimum payout of ₹50,000 for nominees if a subscriber dies before completing one year of continuous service, regardless of the PF account balance. As reported by Mint, family coverage includes the spouse, any unmarried daughters, and sons up to 25 years of age. The account remains the same and is transferred from employer to employer, similar to EPF and EPS, even when changing jobs. The insurance payout at time of demise is exempt from tax for nominees/legal heirs, with similar tax benefits as monthly EPF contributions.
To claim EDLI benefits, claimants must fill and submit EDLI Form 5 IF with signature and employer certification. According to Mint, if no employer signature can be obtained, the form must be attested by a bank manager, local MP/MLA, gazetted officer, magistrate, municipal board member, postmaster, regional EPF committee member, or CBT member. The claimant must submit all documents to the regional EPF Commissioner's Office and can also submit Form 20 for EPF withdrawal and Form 10C/10D to claim benefits under all three schemes (EPF, EPS, and EDLI). The EPF commissioner must settle claims within 30 days from receipt, with claimants entitled to 12% per annum interest for delays.
EDLI contributions are subject to similar tax benefits as monthly EPF contributions, with the insurance payout exempt from tax for nominees/legal heirs. As reported by Mint, the scheme is provided by EPFO for salaried individuals in the private sector in combination with EPF and EPS. The account balance is transferred from employer to employer, and nomination details must be updated through the EPFO website for marriage, childbirth, or changes in nominee details. The scheme provides lump sum payout to family members in case of death during service, with benefits directly credited to the bank account of nominees or legal heirs.
