EDLI Benefits

EPF Act – Family Cover through EDLI and its benefits!


The Employees Provident Fund Organization (EPFO) is one of the two main Social Security schemes under the Government of India, the other being Employees State Insurance (ESI). The EPFO comes under the aegis of the Ministry of Labour and Employment and is responsible for the regulation and management of Provident Funds in the country. The EPFO manages and administers the Employees Provident Fund (EPF), Employees Pension Scheme (EPS), and Employees Deposit Linked Insurance (EDLI).


All the members of the EPFO are covered under the insurance scheme known as EDLI or Employees Deposit Linked Insurance. In this article, we explain the key features of the scheme, eligibility, and benefits of the scheme.

The EDLI scheme was launched in the year 1976 to provide insurance cover to members of the EPFO. Through this scheme, the family of a member gets financial assistance in the case of the death of the member while in service. The insurance cover will depend on the salary drawn in the last 12 months of employment before death.

Under this scheme, there is no exclusion.

EDLI Contribution

The employees and employers contribute to the EPFO scheme and this contribution is split among the three schemes namely, Employees Provident Fund (EPF), Employees Pension Scheme (EPS), and Employees Deposit Linked Insurance (EDLI). There is no contribution from the Employees towards the EDLI scheme, whereas, the employee contribution is 0.5% of the Basic salary + DA, subject to a maximum of Rs:75/-. Eligibility kicks in only when the member has continuously worked for 1 year and is an active member of the EPF.

EDLI Calculation

The average salary drawn by the deceased member during the 12 months before death is taken for calculation of the EDLI benefit. 35 times the average salary in the last 12 months is taken for the calculation, subject to a maximum salary that is capped at Rs:15,000/-. The calculation is as follows:

35,000 x 15,000 = Rs: 5,25,000/-

To this amount, an additional bonus amount of Rs:1,75,000/- is added taking the total amount payable to Rs:7,00,000/-.

Eligibility to claim the EDLI Benefits

The insurance benefits can be claimed by the family members, legal heirs, and nominees of the member.

– Member of the family nominated by the member under the EPF scheme

– In case a nomination has not been made, all the members of the family except major sons, married daughters with major sons, and married granddaughters.

– In case there is no family and no nomination, then legal heirs.

– In the case of a minor, the guardian/family member/legal heirs.

Forms Required

To claim the insurance, the nominee, legal heir, and family member have to apply in EDLI Form 5 IF. The claim form has to be filled separately by each claimant and if the claimant is a minor, the guardian has to fill the form on his/her behalf.

The form has to be filled offline and has to be submitted to the regional EPF Commissioner’s Office along with the Death Certificate issued by the Employer, mentioning the date of death of the member. The Form should also mention the mode of fund transfer.

How to claim EDLI benefits?

  • The member should have been an active member of EPF at the time of death.
  • Form 5 IF has to be filled and submitted to the EPF Commissioner to get the insurance benefit.
  • The form has to be signed and certified by the employer.
  • Where there is no employer, the form has to be attested by any of the following officials:

– A gazetted officer

– The District Magistrate

– Member of Parliament or MLA

– President of the Village Panchayat

– Chairman/Secretary/Member of the Municipal or District Local Board

– Postmaster or Sub-Postmaster

– Regional Committee of EPF or Member of CBT

– Manager of the Bank in which the account is maintained.

Documents required for claiming EDLI

    • Death Certificate of the Member
    • Guardianship Certificate if a person other than the natural guardian files the claim on behalf of a minor family member/nominee/legal heir.
    • Succession Certificate in case the legal heir makes the claim
    • A copy of the canceled cheque of the Bank account to which the payment has to be made.
    • Where the member was last employed under an establishment that is exempted under the EPF Scheme, the employer of such establishment should furnish the PF details of the last 12 months under the certificate part and also submit an attested copy of the Member Nomination Form.

The EPF Commissioner is liable to settle the claim within 30 days failing which he is liable to pay interest @ 12% per annum from the stipulated date to the actual date of settlement.

The EDLI Scheme under the EPF Act provides critical support to the family members of a member who has died while in service. The family members, nominees, and legal heirs are eligible to get a maximum of ₹ 7,00,000 in the event of the death of the member in service. This is a great boon to the family at a very critical juncture.

GetifyHR has been able to provide strong support to clients across the country through its Payroll and HR management outsourcing module. This has provided our clients with a strong edge and helped them to improve the overall performance of the company. Through this outsourcing module, the entire gamut of Payroll processing and HR Management are handled seamlessly and efficiently. This has not only enhanced the performance of the company but has also ushered in a more harmonious work atmosphere.

Labour welfare fund

What is the Labour Welfare Fund and what are its benefits?


The Labour Welfare Fund is an initiative by the Government of India to extend a measure of social assistance to employees in the unorganized sector.  It is a kind of financial assistance for workers to improve their working conditions and standard of living.

Out of the 36 states and Union Territories, only 16 States/UTs have so far implemented this Act. As per the Act, the employees and employers contribute towards this Fund, and in some states, the state also contributes.  Since the Fund is managed by independent states, the rules vary from one state to another.  Any business/industry that satisfies the criteria of number of employees required by the Act to come under its purview has to register with the concerned Labour Department of the state.


In Tamil Nadu, if a company has 5 or more employees on its payroll then it has to register with the Labour Department.  In Kerala, it is 2 or more employees and in Gujarat, it is 10 or more employees. Each State/UT has its own rules to become eligible for registration.

The Act is not applicable to all categories of employees, and depends on the wages earned and the designation of the employees.  Those employees who are in the managerial or supervisory position and drawing salary that is more than what is stipulated in the Act are not eligible for the Fund.  This will vary from state to state.

States/UTs that have implemented the LWF Act

The following States and Union Territories have implemented the Labour Welfare Fund Act:

  1. Andhra Pradesh
  2. Chandigarh
  3. Chattisgarh
  4. Delhi
  5. Goa
  6. Gujarat
  7. Haryana
  8. Karnataka
  9. Kerala
  10. Maharashtra
  11. Madhya Pradesh
  12. Odisha
  13. Punjab.
  14. Tamil Nadu
  15. Telengana
  16. West Bengal.

States/UTs that have not implemented the LWF Act

The following States and Union Territories have not implemented the Labour Welfare Fund Act:

  1. Andaman & Nicobar Islands
  2. Arunachal Pradesh
  3. Assam
  4. Bihar
  5. Dadra and Nagar Haveli
  6. Daman and Diu
  7. Himachal Pradesh
  8. Jammu and Kashmir
  9. Jharkhand
  10. Lakshadweep
  11. Manipur
  12. Megalaya
  13. Mizoram
  14. Nagaland
  15. Pondicherry
  16. Rajasthan
  17. Sikkim
  18. Tripura
  19. Uttar Pradesh

Amount of Contribution

The amount of contribution also varies from state to state.  The following table provides details of the contribution period, contribution amount and due dates for remittance of the contribution.

State/UT Contribution regularity Contribution Months Employee Contribution Employer Contribution Contribution Total Return & Due Date
Andhra Pradesh Annual December 30 70 100 Form F

Jan 31

Chandigarh Monthly April-March 5 20 25 Nil



Chattisgarh Half-Yearly June- Dec. 15 45 60 Form A

31 July

31 Jan

Delhi Half-Yearly June-Dec. 0.75 2.25 6 Form A

15 July

15 Jan.

Goa Half-Yearly June-Dec 60 180 240 Form A

31 July

31 Jan.

Gujarat Half-Yearly June-Dec 6 12 18 Form A1

31 July

31 Jan.

Haryana Monthly Jan – Dec 31 62 93 Nil

31 Dec

Karnataka Annual December 20 40 60 Form D

15 Jan.

Kerala Half-Yearly June-Dec 4 12 16 Form A

15 July

15 Jan

Maharastra Half-Yearly June-Dec 6/12 18/36 24/48 Form A1

15 July

15 Jan

Madhya Pradesh Half-Yearly June-Dec 10 30 40 Nil

15 July

15 Jan

Odisha Half-Yearly June-Dec 20 40 60 Form F

15 July

15 Jan

Punjab Monthly April-March 5 20 25 Nil

15 Oct

15 April

Tamil Nadu Annual December 20 40 60 Form D

15 Jan

Telengana Annual December 2 5 7 Form F

31 Jan

West Bengal Half-Yearly June-Dec 3 15 18 Form D

15 July

15 Jan.

How is the Labour Welfare Fund utilized?

The Labour Welfare Fund is utilized by the Labour Welfare Board to cover the following activities.

  • To provide Libraries
  • For Vocational Training
  • To provide adequate nutrition to children
  • Towards transport facilities
  • For the education of children, through scholarships
  • To provide Medical facilities for employees and dependents
  • To provide entertainment facilities to the employees – sports, art forms, music
  • To provide vacation facilities for employees and their families
  • For providing subsidiary occupation for women and unemployed persons.
  • To provide assistance for Natural and Accidental Death. In Tamilnadu an Accidental death Assistance of  ₹ 1,00,000 and  ₹5,000 towards funeral expenses is provided.  When death is natural, a sum of   ₹25,000/- assistance along with ₹5,000 towards funeral expenses is provided.


The Labour Welfare Fund Act is an important legislation to protect the interests of the workers, especially in the unorganized sector. However, only 16 states and UTs have so far implemented the Act. Though it has not been implemented in all the States and Union Territories in the country, many states and UTs are in the process of implementing them shortly.

GetifyHR is rightly placed to provide a perfect solution to companies that need to streamline their Payroll and be compliant with all the statutory requirements. As one of the top outsourcers of Payroll processing and HR Management, we have been providing exemplary service to our clients across the country. Our outsourcing module can seamlessly handle all aspects of Payroll processing with a high degree of accuracy enabling stress-free operations month over month. In the process, it also handles all the statutory requirements so that the company is compliant always.