EDLI

EDLI stands for Employee's Deposit Linked Insurance. It is a type of life insurance scheme that is mandated by the Employees' Provident Fund Organisation (EPFO) to provide protection to the employees and their families in case of any untoward incident leading to the death of an employee.

Under this scheme, a life cover amount equivalent to 20 times the average monthly salary of the deceased employee is provided to the nominee or legal heirs (as declared by the employee) of the employee. The maximum coverage amount that can be availed under the EDLI scheme is Rs. 7.5 lakhs.

The premium for the EDLI scheme is paid by the employer and is deducted from the EPF contributions of the employee. The current premium rate for the EDLI scheme is 0.5% of the employee's basic wages, dearness allowance, and retaining allowance (if any).

The EDLI scheme is applicable to all EPF members and is electronically administered through the EPFO's online portal. The scheme also provides an option for employees to avail of higher life coverage under the Voluntary Provident Fund (VPF) scheme.