The Employees’ Deposit Linked Insurance Scheme (EDLI) is the life insurance part of the EPF system, and it applies to members of the Employees’ Provident Fund through the contribution their employer makes. EPFO’s official pages describe it as one of three flagship schemes it manages, alongside EPF and the Employees’ Pension Scheme (EPS).
What it is
EDLI is a life insurance scheme tied to your provident fund account. EPFO says employees became eligible for life insurance benefits linked to their PF accounts through the scheme in 1976.
It sits next to the retirement savings in your Employees’ Provident Fund (EPF) account and the pension under EPS, which was introduced in 1995. Together they cover savings, pension and insurance for workers in the organised sector.
How it works
Under the EPF scheme, both you and your employer contribute 12% of basic wages plus dearness allowance (the cost-of-living component of pay). Your whole contribution goes to your EPF account.
Your employer’s 12% is split between EPF, EPS and EDLI. So you do not pay a separate premium for the cover; it is funded from the employer’s share. EPFO’s pages do not state the exact split or the amount of cover, so check the current EPFO rules or your employer’s payroll team for those figures.
Contributions are mandatory for those with wages up to ₹15,000 a month. Employees earning more can join by giving an option under para 26(6) of the EPF Scheme within 6 months of joining, according to EPFO.
Each member has a Universal Account Number (UAN), which stays with you across jobs. That makes your account portable, and the nomination facility is meant to ensure smooth settlement of funds if a member dies.
What it means for you
If you are an EPF member, you may already have life cover without having bought a policy. It is worth knowing this exists when you review your overall protection.
A few practical checks:
- Nomination: make sure your EPF nomination is up to date and names the people you intend.
- UAN and Aadhaar: EPFO says Aadhaar-linked accounts allow faster verification and settlements.
- Employer deposits: contributions deducted from your pay must be deposited by the employer. EPFO says it can invoke penal provisions if an employer recovers contributions but does not deposit them.
- Contribution status: you can check your passbook online through the EPFO portal with your UAN, through the mobile app, or by SMS.
The sources do not give the amount payable under EDLI or the conditions for a claim. If you are comparing it with a term insurance plan, look at the actual cover amount, who it pays and the claim conditions on both sides before judging whether you need more protection.
Background
EPFO was established in 1952 under the Ministry of Labour and Employment. Its Annual Report 2025-26 data shows 36.21 crore active members and 30.64 lakh registered establishments.
A family pension was introduced in 1971, EDLI followed in 1976, and EPS in 1995 added retirement pensions plus widow, widower, orphan and dependent pensions. The UAN was launched in 2014.
