The central government has introduced new rules under the Employees’ Deposit Linked Insurance (EDLI) Scheme 2026 for EPFO members.
The new scheme has replaced the old EDLI rules that had been in place for nearly 50 years.
The rules came into effect across India on June 29 under the Social Security Code, 2020.
The biggest relief is that the maximum insurance cover of ₹7 lakh remains unchanged, while families can now also get an additional benefit of up to ₹1 lakh based on the employee’s PF balance.
Extra Benefit Based on PF Balance
One of the biggest changes in the new EDLI Scheme is the additional insurance linked to the employee’s PF balance.
If an EPF member dies, the nominee will receive the full PF amount along with an extra assurance benefit based on the average PF balance.
If the average PF balance is more than ₹50,000, the nominee will get a fixed ₹50,000, plus 40% of the amount above ₹50,000. However, this additional benefit is capped at ₹1 lakh.
₹7 Lakh Insurance Cover Continues
The government has not changed the existing life insurance benefit under the EDLI scheme.
If an employee had worked continuously for at least 12 months before death, the insurance amount will continue to be calculated using the existing formula.
Under this rule, the minimum insurance payout is ₹2.5 lakh, while the maximum remains ₹7 lakh. In some special cases, families may also receive an additional 20% increase in the insurance amount.
Family Will Still Get Insurance After PF Contributions Stop
The new rules also provide relief to families if PF contributions stop before the employee’s death.
If an EPF member dies within six months of the last PF contribution while still being on the employer’s payroll, the family will still be eligible to claim the ₹7 lakh insurance benefit.
Insurance Claims Must Be Settled Within 20 Days
The government has also introduced strict timelines to speed up claim settlements.
Once all required documents are submitted, the insurance claim must be settled within 20 days.
If an EPFO officer delays the claim without a valid reason, the affected family will receive 12% annual interest on the delayed amount. The government can recover this penalty from the responsible officer.
Entire Process Goes Digital
The new EDLI Scheme also focuses on making EPFO services fully digital.
Employers must now deposit insurance contributions and administrative charges through digital payment within 15 days after the end of every month.
Employees and nominees can also file returns and submit insurance claims through a completely online process, making the system faster and more transparent.
