How the number was built
Each step of the assurance benefit, in the order the scheme applies it.
| Step | What it does | Value |
|---|
How the EDLI benefit is calculated
EDLI is the life cover attached to every EPF account. When a member dies while in service, the family receives it on top of the PF balance and the EPS family pension. The scheme works out two amounts and pays the higher one, as summarised in the SCC Online note on the EDLI Scheme, 2026 and the KPMG flash alert of July 2026.
Enhanced benefit (12 months of continuous service)
- Wage part: 35 times the average monthly wages of the 12 months before the month of death. Each month counts only up to the wage ceiling in force.
- Balance part: half of the average PF balance over the same 12 months, capped at ₹1,75,000.
- Floor and cap: never below ₹2,50,000 and never above ₹7,00,000, as set by the 2021 amendment and continued "until further notice" by the November 2024 notification.
Base benefit (everyone else)
- Built from the average PF balance alone: the balance itself up to ₹50,000, then 40 percent of anything above that.
- Capped at ₹1,00,000, which is reached at an average balance of ₹1,75,000.
- Since the July 2025 amendment, never less than ₹50,000, even when the PF balance is lower or close to zero.
Worked example (the sample values): estimate for October 2026
| Average monthly wages, October 2025 to September 2026 window | ₹30,000 |
| Each month capped at ₹15,000 (all 12 months fall before October 2026) | ₹15,000 |
| Wage part: 35 × ₹15,000 | ₹5,25,000 |
| Balance part: 50% of ₹3,00,000 (below the ₹1,75,000 cap) | ₹1,50,000 |
| Enhanced benefit, within ₹2.5 lakh to ₹7 lakh | ₹6,75,000 |
| Base benefit: ₹50,000 + 40% of ₹2,50,000 = ₹1,50,000, capped | ₹1,00,000 |
| Benefit payable (higher of the two) | ₹6,75,000 |
For an estimate month of October 2027 the whole window falls after the ceiling rise: 35 × ₹25,000 = ₹8,75,000, plus ₹1,50,000, which is held to the ₹7,00,000 maximum. How EPFO splits a window that straddles September 2026 is our reading of the scheme; EPFO had not published worked EDLI examples as of October 2026.
What the ₹25,000 wage ceiling changes
The EPFO wage ceiling went from ₹15,000 to ₹25,000 a month on 17 September 2026 (S.O. 5109(E), PIB). For EDLI this has two effects, both stated in EPFO's FAQs on the change:
| Item | Before 17 Sep 2026 | From 17 Sep 2026 |
|---|---|---|
| Monthly wage counted for EDLI | Up to ₹15,000 | Up to ₹25,000 |
| Wage part at the ceiling (35 ×) | ₹5,25,000 | ₹8,75,000 |
| Maximum benefit | ₹7,00,000 | ₹7,00,000 (unchanged) |
| Employer EDLI contribution at 0.5% | Up to ₹75 a month | Up to ₹125 a month |
In practice, members earning ₹20,000 a month or more will reach the ₹7 lakh maximum once their 12-month window sits fully after the change, if they have 12 months of continuous service. EPFO has said an actuarial valuation of the EDLI fund will follow, so the limits may be revised.
Who is covered
Eligibility
- Every EPF member of a covered establishment is enrolled automatically; there is no separate sign-up.
- The member must die while in service. Since July 2025 the benefit is also payable if death occurs within six months of the last PF contribution while the member is still on the employer's rolls.
- Members of exempted PF trusts are covered too, by the statutory scheme or by an approved group policy that is at least as favourable.
Continuous service
- The ₹2.5 lakh floor and the 35 times formula need 12 months of continuous service before the month of death, across one or more employers.
- A gap of up to 60 days between two jobs is ignored (July 2025 amendment).
- Weekends, weekly offs and declared holidays between leaving one job and joining the next are not a break (EPFO clarification, December 2025).
The EDLI Scheme, 2026
The Ministry of Labour and Employment notified the Employees' Deposit-Linked Insurance Scheme, 2026 on 29 June 2026 under the Code on Social Security, 2020, in force since 21 November 2025. It replaced the EDLI Scheme, 1976 (Taxmann). Published summaries report that:
- The ₹2.5 lakh to ₹7 lakh range, the 35 times wage multiple, the ₹1.75 lakh balance cap and the ₹50,000 floor carried over.
- Claims are to be settled within 20 days, with 12 percent annual interest for delay without sufficient cause.
- The employer contribution rate is notified separately by the Central Government; employers have paid 0.5 percent of wages up to the ceiling.
- A valid EPF nomination applies to EDLI automatically.
Things we could not confirm
- The SCC Online summary mentions an additional enhancement "in accordance with paragraph 21(5)" of the 2026 Scheme. We could not verify its terms, so this calculator does not add it.
- Sources give different G.S.R. numbers for the 2026 Scheme, so we cite it by name and date only. Check the Gazette text before relying on a specific paragraph.
How the family claims it
The nominee files the EDLI claim along with the PF and pension death claims, online through the EPFO member portal or on paper at the regional office, with the death certificate and bank details. The employer attests the claim where it can. If there is no nomination, EDLI goes to eligible family members or legal heirs under the scheme. Employers should keep their own records of the last 12 months' wages and contributions ready, because those drive the amount.
Frequently asked questions
How is the EDLI benefit calculated?
If the member had 12 months of continuous service before the month of death, the nominee gets the higher of two amounts: 35 times the average monthly wages of the last 12 months (each month capped at the wage ceiling) plus 50 percent of the average PF balance (that part capped at 1,75,000 rupees), kept between 2,50,000 and 7,00,000 rupees; or the average balance amount with its 50,000 rupee floor. Without 12 months of continuous service, only the average balance amount applies.
What is the maximum EDLI amount in 2026?
7,00,000 rupees. EPFO's FAQs on the higher wage ceiling say the maximum assurance benefit stays at 7 lakh rupees even though 35 times a 25,000 rupee wage works out to 8,75,000 rupees. EPFO has said an actuarial valuation of the EDLI fund will follow, so the limits may change later.
What is the minimum EDLI benefit?
2,50,000 rupees when the member had 12 months of continuous service before the month of death. Where that condition is not met, the minimum is 50,000 rupees, which the July 2025 amendment introduced even for members whose average PF balance was lower than that.
Does a job change break the 12 months of continuous service?
Not if the gap is 60 days or less. Since the July 2025 amendment, a gap of up to 60 days between two jobs is ignored, and an EPFO clarification of December 2025 says weekends and holidays between leaving one job and joining the next are not a break either.
Who pays for EDLI cover?
The employer. The employee pays nothing. Employers have paid 0.5 percent of wages, capped at the wage ceiling, which is up to 125 rupees a month at the 25,000 rupee ceiling in force from 17 September 2026. The EDLI Scheme, 2026 says the rate is notified by the Central Government from time to time.
Is EDLI still payable if the employee died after leaving the job?
Since the July 2025 amendment, the benefit is payable if the member dies within six months of the last PF contribution and was still on the employer's rolls. A member who had already left the job and was not on any employer's rolls may not qualify, so check with the EPFO regional office.
What changed with the EDLI Scheme, 2026?
The Ministry of Labour and Employment notified the Employees' Deposit-Linked Insurance Scheme, 2026 on 29 June 2026 under the Code on Social Security, 2020, replacing the 1976 scheme. Published summaries say the 2,50,000 to 7,00,000 rupee range, the 35 times wage multiple and the 50,000 rupee floor carried over, and claims are to be settled within 20 days.
How does the nominee claim EDLI?
The nominee files the EDLI claim together with the PF and pension death claims, online through the EPFO member portal or on the EDLI claim form (Form 5 IF under the 1976 scheme) at the regional office, with the death certificate and bank details. A valid EPF nomination applies to EDLI automatically. Without one, the benefit goes to eligible family members or legal heirs.
Sources
- EPFO FAQs on the wage ceiling rise to ₹25,000 (S.O. 5109(E), 17 September 2026), via SGCMS: EDLI maximum stays ₹7 lakh, 0.5% employer contribution
- PIB: Cabinet approves enhancement of EPFO wage ceiling from ₹15,000 to ₹25,000 per month (September 2026)
- SCC Online: Employees' Deposit-Linked Insurance Scheme, 2026, key changes (3 July 2026)
- Taxmann: Government notifies EDLI Scheme, 2026 (29 June 2026)
- KPMG GMS Flash Alert 2026-192: new EPF, EPS and EDLI schemes (July 2026)
- greytHR: EDLI (Amendment) Scheme, 2021 (35 times wages, ₹1.75 lakh, ₹2.5 lakh to ₹7 lakh)
- Deloitte tax alert: retrospective extension of enhanced EDLI benefits (November 2024)
- greytHR: EDLI (Amendment) Scheme, 2025 (₹50,000 minimum, 60-day gap, six-month rule)
- Outlook Money: EPFO clarification on weekends and holidays in EDLI service (December 2025)
- Upstox: Employees' Deposit Linked Insurance, 2026 (average balance method and worked example)
- Code on Social Security, 2020 (full text)
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Disclaimer: This calculator gives an estimate for general guidance only and is not legal or financial advice. The amount EPFO pays depends on its own record of wages, contributions and service, on the rules in force on the date of death, and on any enhancement this tool does not model. Figures reflect the EDLI Scheme, 2026 and the EPFO wage ceiling as reported in October 2026. Please confirm with the EPFO regional office.