HR & payroll glossary
What is EDLI? Employees' Deposit Linked Insurance
EDLI is the life cover attached to PF: the employer pays 0.5% of PF wages and EPFO pays a lump sum to the nominee if a member dies while in service.
Definition
The Employees' Deposit Linked Insurance Scheme gives every PF member life insurance without a separate policy. The employer alone contributes, at 0.5% of PF wages up to the wage ceiling, and the benefit is paid by EPFO to the nominee or legal heir when a member dies in service.
How it works
- Employer EDLI = 0.5% of PF wages up to the PF wage ceiling (₹25,000 from 17 September 2026), so at most ₹125 a month.
- Nothing is deducted from the employee's salary for EDLI.
- The benefit is linked to the member's recent wages and PF balance, within the minimum and maximum the scheme sets.
- Employers with an approved group scheme giving better cover can apply for exemption.
Why HR and payroll teams care
EDLI is paid with the monthly ECR, so it is part of employer cost in every CTC. Nominations matter: the claim goes to the nominee recorded with EPFO.
Example
PF wages of ₹30,000, ceiling ₹25,000
- EDLI wages: ₹25,000
- Employer EDLI: 0.5% × ₹25,000 = ₹125 a month
- Employee deduction for EDLI: nil
EDLI in NeevHR
Related reading
See how NeevHR handles EDLI in payroll and HR
A walkthrough on your own policies and pay structures.