In a significant move to provide financial security to employees and their families, the Employees’ Provident Fund Organisation (EPFO) continues to offer life insurance coverage of up to ₹7 lakh through the Employees’ Deposit Linked Insurance (EDLI) Scheme in 2025. This benefit is available to all salaried employees who are members of EPFO and work in the organized sector.
This epfo 7 lakh insurance coverage ensures that in the unfortunate event of an employee’s death during service, the nominated family members receive a lump-sum amount without paying any premium. The scheme, administered automatically to all EPF account holders, plays a vital role in employee insurance in India.
Here’s a complete guide explaining who qualifies for the EDLI benefit, how to claim it, and why it is essential for families relying on salaried income.
What Is the EDLI Scheme Under EPFO?
The Employees’ Deposit Linked Insurance (EDLI) scheme is a government-backed group life insurance scheme that offers life cover to EPFO subscribers. It is linked to the Provident Fund and is applicable to all employees whose employer contributes to the EPF scheme.
Key highlights of the EDLI scheme in 2025:
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Maximum insurance amount: ₹7,00,000
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Minimum insurance amount: ₹2,50,000
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No premium required from employee or employer
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Coverage: Valid as long as employee is an active EPFO subscriber
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Administered by: Employees’ Provident Fund Organisation (EPFO), Government of India
The scheme runs alongside EPF and EPS and is applicable from day one of joining the company.
Who Is Eligible for the ₹7 Lakh EPFO Insurance?
The edli scheme benefits are available to all salaried individuals enrolled under EPFO, without any age, salary, or tenure restriction.
Eligibility conditions:
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Employee must be an active member of EPFO
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Must have contributed to EPF during the past 12 months (even partially)
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Insurance coverage applicable during death while in service (before retirement or resignation)
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Nominees/legal heirs must be registered on the EPF portal
There is no separate registration required for the insurance. As long as the EPF account is active, the insurance cover is automatically provided.
How Is the ₹7 Lakh Insurance Amount Calculated?
The payout under the EDLI scheme is not a flat ₹7 lakh for all. The amount is calculated based on the last drawn salary and average EPF contributions made by the employer.
Calculation formula (as per 2025 guidelines):
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Insurance = 35 times of the last drawn monthly salary (basic + DA)
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Bonus = ₹1,75,000 (fixed)
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Maximum payout: ₹7,00,000
Example:
If an employee’s basic + DA is ₹18,000
→ 35 × ₹18,000 = ₹6,30,000
→ Add bonus ₹1,75,000 = ₹8,05,000
→ Capped to ₹7,00,000 as per maximum limit
The insurance amount is credited in full to the nominee’s bank account after successful claim verification.
How to Claim EPFO’s ₹7 Lakh Insurance
In the unfortunate event of an employee’s death, the nominee or legal heir must apply for the insurance amount using the EDLI claim form.
Steps to claim the insurance:
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Download and fill Form 5 IF (available on EPFO portal)
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Attach the following documents:
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Death certificate of the employee
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Nominee’s Aadhaar card
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Employee’s PF number
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Cancelled cheque of the nominee’s bank account
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Employer’s attestation and signature
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Submit the form to the concerned EPFO regional office
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Track the claim via the EPFO online portal or by contacting the employer
The claim is generally processed within 30 days, and delay beyond this entitles the nominee to an interest payment.
FAQs
Who is eligible for EPFO’s ₹7 lakh insurance?
All salaried employees registered under EPF with an active account are automatically eligible for EDLI insurance coverage.
Is there any premium or cost involved in this insurance?
No. The insurance is provided free of cost to the employee—no premiums are required from the employee or employer.
What is the maximum payout under the EDLI scheme?
The maximum insurance payout under the EDLI scheme is ₹7,00,000, based on the last drawn salary and bonus.
How can the nominee claim the insurance amount?
The nominee must fill Form 5 IF, attach necessary documents, and submit it to the nearest EPFO regional office.
How long does the claim process take?
Typically, it takes 30 days for the EPFO to process and disburse the insurance amount after submission of valid documents.
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Aanchal is a passionate writer with a keen interest in storytelling, content creation, and creative expression. She enjoys exploring diverse topics and crafting engaging narratives that captivate readers.