EPFO Brings a Special Feature for PF Accounts: Learn The Easy Way to Avail The Benefits
Most salaried employees know their PF account helps build a retirement fund but very few realize it also brings along a major financial safety net. Through the EDLI (Employees’ Deposit Linked Insurance) scheme, every EPF member automatically receives free life insurance coverage of up to ₹7 lakh, without filling any form or paying any premium.
What Exactly Is the EDLI Scheme?
The EDLI scheme is one of the three major benefits connected to your EPF account, alongside EPF and EPS. It offers life insurance protection to all PF members. Enrollment is automatic if your PF is deducted, you are already covered.
No Premium From Employees
A key highlight of EDLI is that employees don’t have to spend anything. The entire insurance premium is taken care of by the employer, making the benefit completely free and hassle-free.
How Employers Contribute
According to EPFO rules, employers contribute 0.5% of your monthly basic salary plus DA to the EDLI scheme. This amount is handled by the company internally and doesn’t show up as any deduction in your salary slip.
When Does the Insurance Cover Apply?
The insurance becomes active if an employee passes away while still employed whether at work, at home, on leave, or anywhere else. Regardless of the situation, the nominee or family is eligible to receive the payout.
Insurance Amount Offered
Based on this, the payout ranges from ₹2.5 lakh (minimum) to ₹7 lakh (maximum).
Who Qualifies for EDLI?
Every employee whose PF is being deducted qualifies. This includes permanent staff, contract workers, and even temporary employees. As long as your PF account is active, you are protected.
Why This Scheme Is Important
Millions of employees unknowingly hold this valuable insurance cover. During tough times, EDLI offers essential financial support to families, making it one of the most meaningful and often overlooked benefits of being an EPF member.
Disclaimer: This article is for informational purposes only and should not be considered financial or legal advice. EPF and EDLI rules may change over time. Employees are advised to verify details with the official EPFO website or consult their employer/HR for accurate and updated information.
What Exactly Is the EDLI Scheme?
The EDLI scheme is one of the three major benefits connected to your EPF account, alongside EPF and EPS. It offers life insurance protection to all PF members. Enrollment is automatic if your PF is deducted, you are already covered. No Premium From Employees
A key highlight of EDLI is that employees don’t have to spend anything. The entire insurance premium is taken care of by the employer, making the benefit completely free and hassle-free.How Employers Contribute
According to EPFO rules, employers contribute 0.5% of your monthly basic salary plus DA to the EDLI scheme. This amount is handled by the company internally and doesn’t show up as any deduction in your salary slip. When Does the Insurance Cover Apply?
The insurance becomes active if an employee passes away while still employed whether at work, at home, on leave, or anywhere else. Regardless of the situation, the nominee or family is eligible to receive the payout.Insurance Amount Offered
The insurance coverage depends on two components:
- Your average salary from the last 12 months
- Your PF balance
Based on this, the payout ranges from ₹2.5 lakh (minimum) to ₹7 lakh (maximum).
Who Qualifies for EDLI?
Every employee whose PF is being deducted qualifies. This includes permanent staff, contract workers, and even temporary employees. As long as your PF account is active, you are protected. Why This Scheme Is Important
Millions of employees unknowingly hold this valuable insurance cover. During tough times, EDLI offers essential financial support to families, making it one of the most meaningful and often overlooked benefits of being an EPF member. Disclaimer: This article is for informational purposes only and should not be considered financial or legal advice. EPF and EDLI rules may change over time. Employees are advised to verify details with the official EPFO website or consult their employer/HR for accurate and updated information.
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