5 days ago
Your EPF makes you eligible for ₹7 lakh life insurance. Here's what you need to do
Do you contribute a part of your salary to the Employees Provident Fund (EPF)? If yes, you are eligible for life insurance up to ₹7 lakh under the Employees Deposit Linked Insurance (EDLI) scheme.
In other words, if an EPF member passes away while in service, the Employees Provident Fund Organisation (EPFO) will give their nominees or legal heirs up to ₹7 lakh, depending on the employee's service period and last 12 months of salary.
Also, unlike with EPF, in which employees contribute 12% of their basic salary and dearness allowance (PF wages), you don't have to pay any premium for EDLI. Employers contribute 0.5% of each employee's PF wages, up to a maximum of ₹75 per employee per month, to enrol them under EDLI. Employers cannot charge you for this premium or deduct it from your salary.
The EPFO recently proposed some changes in the EDLI scheme, which, once implemented, will offer enhanced benefits to thousands of EPF members.
Also read | Is EPF advisory the next fintech goldmine?
What are the proposed changes to the EDLI scheme?
'For example, if an employee stops contributing to EPF due to unpaid leave but remains on the employer's payroll with non-contributory period (NCP) days, their name is not removed from records. In such a case, they will still be eligible for EDLI scheme benefits," said FinRight, a PF consulting firm.
The Central Board of Trustees, chaired by Union labour minister Mansukh Mandaviya, approved the proposed revisions during its 237th meeting in February. An EPFO official informed Mint that the draft has been sent to the government for notification. 'It has been approved and will soon be notified," the official said.
Also read | EPFO reforms: Getting PF dues shouldn't require special services
Add your nominees online
E-nomination for the EDLI scheme is simple. Log in to the EPF member portal with your UAN (Universal Account Number) and password, and go to the 'e-nomination' section under 'Manage'. You'll need to add your family members, upload their photos, and enter their Aadhaar numbers. The system verifies Aadhaar data against name, date of birth, and gender. Only on successful verification will the family members be added.
'Form 2 is used for nominations. It has two parts—Part A and Part B. Part A covers EPF nominations, while Part B is for EPS nominations. Nominees listed in Part A are also eligible for EDLI benefits," said Adarsh Vir Singh, founder of social security consulting firm Nidhi Niyojan.
Who can be your nominees?
Nominees for EPF and EDLI benefits have to be the same. Under EPF, 'family' includes dependent father, dependent mother, wife, sons (including adult sons), daughters (including married ones), deceased son's widow, deceased son's sons, and deceased son's daughters. Female members may also nominate their husband's dependent parents. Both male and female members can state in writing if they want to exclude their spouse—or, in the case of women, the husband's parents—from the definition of 'family'.
How to claim EDLI benefits
While making claims, a nominee has to submit EDLI Form 5 (IF). Forms can be downloaded from Further, the employer must sign and certify the claim form. Beneficiaries can make the claim online too if the EPF member had filled in an e-nomination. Look for 'Death claim filing by beneficiary' on the EPFO member portal on the bottom right to start the process.
Enter the EPF member's UAN, the beneficiary's name, Aadhaar number, and date of birth. Aadhaar must be linked with a valid phone number for OTP verification.
The following documents have to be enclosed when making a claim:
Also read | PF withdrawn but no idea about EPS? You can still access it.
