EPFO’s EDLI scheme can give families ₹7 lakh on member’s death

The Employees Provident Fund Organisation (EPFO) provides insurance cover under the Employees Deposit Linked Insurance (EDLI) scheme, offering a lumpsum payout of up to ₹7 lakh if an EPF member dies while in service. The payout is calculated as 30 days of the member's average monthly salary from the last 12 months, capped at ₹15,000 per month, plus a ₹2.5 lakh bonus, totalling ₹7 lakh minimum assurance of ₹2 lakh is applicable for those with at least 12 months of continuous employment. The benefit goes to nominees, spouse, unmarried daughters, or sons up to age 25, and is tax exempt.

Claimants must submit EDLI Form 5 IF, certified by the employer or an authorised officer (bank manager, MP, MLA, gazetted officer, magistrate), to the regional EPF commissioner's office. The EPFO must settle the claim within 30 days, failing which interest at 12% per annum accrues to the claimant. Employees are auto-enrolled with no additional cost if their firm has over 20 employees, the employer contributes 0.5% of basic salary, capped at ₹75 per month. Contract or casual workers who changed jobs in the last 12 months can also claim the minimum ₹50,000 payout if they die before one year of continuous service with one employer.