If you contribute to EPF, your family is now guaranteed at least ₹50,000 in life cover if you die in service, even if your provident fund balance is tiny and even if you had worked less than a year. This is the headline change brought in by the Employees Deposit-Linked Insurance (Amendment) Scheme, 2025, notified on 18 July 2025. There is no premium to pay and no separate form to enrol. Every EPF member is already covered.
Quick answer: Under the EDLI Amendment Scheme 2025 (G.S.R. 476(E), 18 July 2025), the nominee or legal heir of a deceased EPF member gets a minimum assurance of ₹50,000, even if the member's average PF balance over the previous 12 months was below ₹50,000 and even if the member had not completed one year of continuous service. The maximum EDLI payout stays at ₹7 lakh. The benefit is automatic, free, and needs no separate enrolment.
EDLI (Employees Deposit-Linked Insurance) is a built-in life insurance cover for every EPF member. The 2025 amendment widened who qualifies and set a floor on the payout.
| Situation of the member | EDLI cover the family now gets |
|---|---|
| Member dies in service, PF balance below ₹50,000 | At least ₹50,000 (the new minimum floor) |
| Member dies with under one year of continuous service | Still eligible for the ₹50,000 minimum |
| Member had a job gap of up to 60 days between two spells | The two spells are treated as continuous service |
| Member rendered at least six months of service and was on the rolls at death | Eligible for the assurance benefit |
| Member with a strong PF balance and longer service | Up to the existing maximum of ₹7 lakh |
The cover is paid on top of the PF balance and the pension (EPS) benefit. It is a separate insurance payout, not a deduction from the member's savings.
The Ministry of Labour and Employment notified the Employees Deposit-Linked Insurance (Amendment) Scheme, 2025 through G.S.R. 476(E) dated 18 July 2025, under section 6C read with section 7(1) of the Employees Provident Funds and Miscellaneous Provisions Act, 1952. It took effect on 18 July 2025. Three relaxations matter most to families:
A further relaxation extends the assurance benefit to a member who had rendered at least six months of continuous service and was on the rolls of the employer at the time of death.
What did not change: the maximum EDLI assurance stays at ₹7 lakh. Do not confuse the new ₹50,000 minimum floor with this ₹7 lakh ceiling. The minimum protects short-service, low-balance families; the maximum caps the payout for high-balance, long-service members.
For members who qualify for more than the floor, EDLI is calculated on the established formula: roughly 35 times the average monthly wage (capped for EDLI purposes), plus a bonus, with the total subject to the ₹7 lakh maximum. The 2025 change does not touch this formula. It only adds a ₹50,000 guarantee at the bottom end and widens eligibility, so that no covered family is left empty-handed.
The EDLI payout is part of the death benefit your family claims from EPFO. It is generally tax-free in the hands of the nominee, since insurance proceeds on death are not treated as taxable income.
EDLI is not claimed separately from the rest of the PF death benefit. The nominee files the death-claim set with the EPFO, and the EDLI assurance is processed along with the PF and pension claims.
For the full claim-form walkthrough, see our guide on the EDLI Form 5IF claim process and the broader PF death benefit claim for a nominee.
If you want a worked illustration: suppose Dr. Shrawan Kumar Pathak passed away nine months into a new job, with only a small PF balance built up. Before 2025, his family might have received a tiny EDLI amount. Under the amended scheme, his nominee, Kashvi Pathak, is guaranteed at least ₹50,000 from EDLI, on top of his actual PF balance.
No. EDLI is automatic for every EPF member. The employer pays the EDLI contribution; the employee pays nothing extra. There is no separate enrolment and no premium deducted from your salary.
The ₹50,000 is the minimum floor the family is guaranteed even when the PF balance is low or service is short. The ₹7 lakh is the maximum cap on the payout for members with higher wages and longer service. Both exist at the same time, at opposite ends of the scale.
Yes. The 2025 amendment removed the practical one-year barrier for the minimum benefit. Even a member who died before completing one year of continuous service is covered for at least ₹50,000.
A gap of up to 60 days between two spells of employment is ignored. The two spells are added together and treated as continuous service when working out your EDLI eligibility.
Insurance proceeds paid on the death of a member are generally not taxable income in the hands of the nominee. Keep the EDLI settlement record with your tax papers.
The nominee files the death-claim set, including Form 5IF for EDLI, through the last employer or directly with EPFO. Keeping the e-nomination on the UAN updated avoids disputes and speeds up settlement.