Employees’ Deposit Linked Insurance Scheme, 2026

The Government of India, the Ministry of Labour and Employment, has issued notification no. G.S.R. 526(E), on 29^th June 2026, announcing the Employees’ Deposit Linked Insurance Scheme, 2026. This new Scheme is established in accordance with the Code on Social Security, 2020, and will replace the Employees’ Deposit Linked Insurance Scheme, 1976. The Scheme will take effect from the date of its publication, which is 29^th June 2026.

The key features of the new Scheme are detailed as follows:

• The contributions made by the employer to the EDLI Fund will continue to be based on the wages of employees, adhering to the prescribed wage ceiling of Rs 15,000/- per month.

• The employer’s contribution to the insurance fund will remain at 0.5% of the wages, as stated in the subsequent notification dated 1^st July 2026.

• A strict legal deadline of 20 days is mandated for the EPFO to address claims. If an official delays a legitimate claim beyond this period without a valid justification, a penalty of 12% annual interest will be directly deducted from the official responsible.

• This Scheme will apply to all employees who are enrolled in the EPF Scheme.

• The Scheme offers insurance benefits to the nominee or legal heir in the event of a member’s death, subject to the specified conditions.

• Members who have completed the minimum required service will receive a benefit ranging from a minimum of Rs. 2,50,000 to a maximum of Rs. 7,00,000.

• A minimum life insurance benefit of Rs. 50,000 will be provided, even if the employee’s average PF balance is below Rs. 50,000, and has not completed 12 months of continuous service.