What is the calculation formula for the EDLI scheme?

The EDLI payout consists of two parts: (1) Base Assurance = 35 × Average Monthly Basic Salary of the last 12 months (capped at statutory wage ceiling of ₹15,000 pre-2026 or ₹25,000 post-17 Sept 2026); plus (2) Bonus Amount = 50% of the average EPF passbook balance during the preceding 12 months (max ₹1,75,000). The total payout is subject to a ₹2,50,000 minimum floor (for 12+ months continuous service) and an absolute maximum ceiling of ₹7,00,000.

What is the maximum and minimum insurance payout under EDLI?

Under the permanent EDLI Second Amendment Scheme 2024, the minimum assurance payout is ₹2,50,000 (provided the deceased employee had at least 12 months of continuous service across one or more covered establishments) and the maximum assurance cap is ₹7,00,000.

Does the employee contribute any money towards the EDLI Scheme?

No. Employees contribute ₹0 towards EDLI. The scheme is 100% employer-funded. The employer contributes 0.5% of monthly basic wages under EPF Account No. 21. Administrative inspection charges under Account 22 have been completely waived.

How does the ₹25,000 wage ceiling change EDLI calculations after September 2026?

Under Gazette Notification S.O. 5109(E) effective 17 September 2026, the statutory wage ceiling increased from ₹15,000 to ₹25,000. At the ₹25,000 ceiling, the 35× multiplier yields ₹8,75,000 on base wages alone, meaning higher-earning members hit the ₹7,00,000 statutory cap directly without needing an EPF passbook balance bonus.

Which form is required to claim EDLI insurance benefits?

Beneficiaries or nominees must submit EPFO Form 5(IF) along with Form 20 (PF withdrawal) and Form 10D (monthly pension), accompanied by the member’s death certificate, cancelled cheque with printed name, and legal heir certificate (if no e-nomination was registered).

🛡️ Scheme 1976 Framework ✓ 2024 Permanent Amendment ⚖️ S.O. 5109(E) Dual-Ceiling Engine

EDLI Calculator India (2026 Rules)

Calculate statutory life insurance assurance benefits up to ₹7,00,000 under the Employees' Deposit Linked Insurance (EDLI) Scheme, 1976 with automatic 12-month dual-ceiling lookback blending.

Assurance & Salary Parameters

Configure lookback wages, EPF passbook balance & service continuity

EDLI Para 22

Actual Basic Salary + DA (Monthly) * ₹25,000

₹

Statutory wage cap: ₹15,000 (pre-17 Sept 2026) vs ₹25,000 (post-17 Sept 2026 under S.O. 5109(E)).

Average EPF Passbook Balance (Last 12 Mos) * ₹1,50,000

₹

50% of average EPF balance is added as a bonus (strictly capped at ₹1,75,000 maximum).

Date of Event / Death * Lookback Trigger

12-Month Lookback Blend: ₹25,000 / mo

Pre-2026 Months (₹15k Cap): 0 • Post-2026 Months (₹25k Cap): 12

Continuous Contributory Service ≥ 12 Months? Continuous service across one or more covered establishments qualifies beneficiaries for the statutory ₹2,50,000 minimum floor guarantee.

✓ ₹2,50,000 Statutory Minimum Floor Active

⚖️

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Statutory EDLI Assurance Projection

Live Result

12-Month Capped Wage Average Preceding month of death

₹25,000

Base Assurance (35× Wage Average) Statutory multiplier component

₹8,75,000

EPF Balance Bonus (50% Average) Statutorily capped at ₹1,75,000

₹75,000

Gross Computed Entitlement: ₹9,50,000

Estimated EDLI Assurance Payout

₹7,00,000

Capped at the statutory maximum limit of ₹7,00,000 under the permanent 2024 amendment.

🛡️ 100% Tax-Free (Sec 10(10D)) • Payable to Nominee / Legal Heir

Statutory Cap Utilization 100% (₹7,00,000 Maximum)

📋

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Estimated EDLI Payout:

₹7,00,000

View Details ↓

📐 Section 6C • EDLI Scheme 1976

How is EDLI Life Assurance Calculated in India? (Statutory Formula)

Under Paragraph 22 of the Employees' Deposit Linked Insurance (EDLI) Scheme, 1976, the assurance benefit payable to the nominee or legal heir of an active EPF member who dies in service is computed using a two-part statutory formula subject to mandatory statutory caps:

1. Base Assurance Formula

Base Assurance = Average Monthly Basic Wages + DA (Last 12 Mos) × 35

*The monthly basic wage is strictly capped at the prevailing statutory wage ceiling: ₹15,000 (pre-17 Sept 2026) or ₹25,000 (post-17 Sept 2026 under S.O. 5109(E)).

2. Bonus Assurance Formula (EPF Balance)

Bonus Amount = 50% × Average EPF Passbook Balance (Last 12 Mos)

*The bonus component is strictly capped at a statutory ceiling of ₹1,75,000.

3. Combined Benefit with Statutory Floor & Ceiling

Total EDLI Payout = Min( Max(Base + Bonus, ₹2,50,000*), ₹7,00,000 )

*₹2,50,000 minimum floor applies only if the deceased employee completed 12+ months of continuous contributory service across one or more covered establishments.

📜 Statutory Rules & Guidelines

EDLI 1976 Key Statutory Circulars & 2026 Wage Ceiling Impact

Four cornerstone statutory principles govern all EDLI life assurance claims processed through EPFO field offices:

Permanent Enhancement (2024 Gazette)

Under the EDLI (Second Amendment) Scheme, 2024 (Gazette notification No. EDLI/1/2022/Vol.II), the enhanced minimum assurance of ₹2,50,000 and maximum assurance of ₹7,00,000 were made permanent. They no longer require periodic 3-year sunset extensions.

S.O. 5109(E) ₹25k Ceiling Impact

With the wage ceiling increasing to ₹25,000 on 17 Sept 2026, the baseline multiplier calculation fundamentally shifts: 35 × ₹25,000 = ₹8,75,000. Higher earners reach the ₹7 Lakh maximum cap directly from their basic wage, making the EPF passbook balance bonus secondary.

12-Month Continuous Service Rule

To qualify for the ₹2,50,000 minimum floor, the member must have completed at least 12 months of continuous service preceding death. Continuity is recognized across multiple covered establishments without a break in contribution. If service is under 12 months, the 35× multiplier still applies, but without the floor safety net.

100% Employer-Funded (Account 21)

Employees pay ₹0 for life insurance coverage. The employer pays 0.5% of the wage base under EPF Account No. 21. Administrative inspection charges under Account 22 have been waived (₹0) by the Ministry of Labour and Employment.

📋 Claim Process

How to Claim EDLI Life Insurance: Form 5(IF) Procedure

When an active EPF member passes away, their registered nominee or legal heir can claim EDLI insurance benefits by following this statutory protocol:

Combined Submission of Claims

Submit Form 5(IF) (EDLI insurance) together with Form 20 (EPF accumulation withdrawal) and Form 10D (monthly pension for spouse and dependent children) to the regional EPFO office where the member's account is maintained.

Mandatory Documentation

Enclose: (a) Original Death Certificate, (b) Nominee/Beneficiary Aadhaar and PAN card, (c) Cancelled bank cheque with printed beneficiary name and IFSC code, (d) Legal Heir Certificate or Succession Certificate if no e-nomination was registered.

Employer Attestation & Closed Establishment Protocol

Form 5(IF) must be attested by the deceased member's employer. If the establishment is closed or untraceable, the form can be certified by a Bank Manager, Gazetted Officer, Magistrate, or Member of Parliament/MLA under Para 24 of the scheme.

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❓ Clarifications

Frequently Asked Questions on EDLI Life Assurance

Official statutory guidance on eligibility, nomination rules, and payout guarantees under the EDLI 1976 scheme:

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