Paragraph 21
EDLI Calculator: EPFO Insurance Benefit Under the EDLI Scheme, 2026: This free EDLI calculator works out the assurance benefit EPFO pays to the nominee or family when a PF member dies in service. It follows paragraph 21 of the Employees' Deposit Linked Insurance Scheme, 2026, notified under the Code on Social Security, 2020. It shows:
- average monthly PF wages, with each month capped at that month's wage ceiling (₹15,000, then ₹25,000 from 17 September 2026);
- the wages part (35 × average wages) and the balance part (50% of average PF balance, up to ₹1.75 lakh);
- the final benefit within the ₹2.5 lakh minimum and ₹7 lakh maximum;
- the benefit for members with less than 12 months' service (minimum ₹50,000).
EDLI Calculation Formula (Paragraph 21)
This applies when the member had 12 months' continuous employment before death; a gap of up to 60 days between two jobs is ignored. Average monthly wages are for the 12 months before the month of death, each month capped at the notified wage ceiling.
EDLI Calculation Example (Calculator Default)
A member dies in November 2026. Basic + DA ₹30,000, gross ₹50,000, average PF balance ₹2,00,000. PF wages are ₹30,000 (higher than 50% of gross, ₹25,000).
| Step | Working | Amount |
|---|---|---|
| Wages counted, Nov 2025 to Aug 2026 | 10 months at the ₹15,000 ceiling | ₹1,50,000 |
| Sep 2026 | Pro rata ceiling (16 days at ₹15,000 + 14 days at ₹25,000) ÷ 30 | ₹19,666.67 |
| Oct 2026 | ₹25,000 ceiling | ₹25,000 |
| Average monthly wages | ₹1,94,666.67 ÷ 12 | ₹16,222.22 |
| Wages part | 35 × ₹16,222.22 | ₹5,67,778 |
| Balance part | 50% × ₹2,00,000 | ₹1,00,000 |
| EDLI benefit | Within ₹2.5 lakh to ₹7 lakh | ₹6,67,778 |
Once a member has drawn PF wages of ₹25,000 for 12 months, the wages part alone is 35 × ₹25,000 = ₹8,75,000, so the benefit reaches the ₹7 lakh maximum. The higher ceiling makes the maximum easier to reach but does not raise it.
EDLI Benefit Rules at a Glance
| Rule | EDLI Scheme, 2026 |
|---|---|
| Who is covered | Every PF member, including members of exempted PF trusts |
| 12 months' continuous service | 35 × average monthly wages + 50% of average balance (up to ₹1.75 lakh); minimum ₹2.5 lakh, maximum ₹7 lakh |
| Gap between jobs | Up to 60 days ignored when counting 12 months' continuous service |
| Less than 12 months' service | Based on average balance (₹50,000 + 40% of the excess over ₹50,000, up to ₹1 lakh), increased by 20%; minimum ₹50,000 |
| Death after leaving payroll contributions | Covered if death occurs in service within 6 months of the last contribution while still on the employer's rolls |
| Who pays | Only the employer contributes, with administrative charges, at the rate the government notifies; nothing is deducted from the employee |
| Claim settlement | EPFO must settle a complete claim within 20 days; delay without sufficient cause can attract penal interest at 12% a year |
EDLI for Members With Less Than 12 Months' Service
If the member did not have 12 months' continuous employment before death, paragraph 21(1) to (5) applies:
- average balance up to ₹50,000: the amount equals the average balance;
- average balance above ₹50,000: ₹50,000 plus 40% of the excess, subject to a ceiling of ₹1 lakh;
- this amount is increased by 20% (paragraph 21(5));
- a minimum assurance benefit of ₹50,000 is payable (paragraph 21(2)).
| Average balance | Working | Benefit |
|---|---|---|
| ₹30,000 | ₹30,000 + 20% = ₹36,000, raised to the minimum | ₹50,000 |
| ₹90,000 | (₹50,000 + 40% × ₹40,000) + 20% = ₹66,000 + ₹13,200 | ₹79,200 |
The calculator reads the ₹1 lakh ceiling as applying to the amount before the 20% increase, as the paragraph is worded. EPFO works out the final amount from its records.
What Counts as Wages and Average Balance
- Wages: as defined in Section 2(88) of the Code on Social Security, 2020: basic pay, DA and retaining allowance. If excluded allowances are more than 50% of total pay, the excess is added back, so PF wages are at least 50% of gross.
- Wage ceiling: ₹15,000 a month, raised to ₹25,000 from 17 September 2026 (S.O. 5109(E)). Wages above the ceiling in a month are not counted.
- Average balance: the average of the PF account balance over the 12 months before the month of death (or the membership period, if less), including employee and employer shares and interest. Contributions due but not paid by the employer are also counted.
How the Family Claims EDLI
- The nominee (or legal heir, if there is no nomination) files the EDLI claim with EPFO, along with the PF and pension claims.
- Keep the death certificate, the member's UAN, and the claimant's bank account details and identity proof ready.
- EPFO pays the benefit directly into the claimant's bank account; a complete claim must be settled within 20 days.
Updating the e-nomination on the EPFO member portal makes the claim faster for the family. Use the EPF pension calculator for EPS benefits.
How to Use This EDLI Calculator
- Open Member: choose the month and year of death, and whether the member had 12 months' continuous service.
- Open PF wages: enter Basic + DA and gross wages a month, and the calculator applies each month's ceiling. Or choose Average and enter the average monthly PF wages yourself.
- Open PF balance: enter the average PF balance over the last 12 months.
- Read the wages part, balance part and EDLI benefit, with the month-by-month wages counted. Use Copy to share it.
Frequently Asked Questions
How is EDLI calculated?
35 times the average monthly PF wages of the last 12 months, plus 50% of the average PF balance (up to ₹1.75 lakh). The total is at least ₹2.5 lakh and at most ₹7 lakh.
What is the maximum EDLI amount?
₹7 lakh under paragraph 21(4) of the EDLI Scheme, 2026. It did not change when the PF wage ceiling rose to ₹25,000.
What is the minimum EDLI amount?
₹2.5 lakh for a member with 12 months' continuous service before death. For shorter service, the minimum is ₹50,000.
Does the ₹25,000 wage ceiling increase EDLI?
Yes, for members earning above ₹15,000, because more wages are counted. The average is over 12 months, so the full effect shows a year after 17 September 2026. The ₹7 lakh maximum stays.
Is EDLI deducted from the employee's salary?
No. Only the employer pays the EDLI contribution and administrative charges, at the rate notified by the Central Government.
Is EDLI paid if the employee changed jobs?
Yes. A gap of up to 60 days between two jobs is ignored when counting 12 months' continuous service.
Is EDLI paid if the member dies after contributions stopped?
Yes, if the member dies in service within 6 months of the last PF contribution while still on the employer's rolls.
Is EDLI paid in addition to the PF balance?
Yes. The EDLI assurance benefit is paid on top of the PF accumulations and the EPS pension for the family.
How long does EPFO take to pay EDLI?
A complete claim must be settled within 20 days of receipt. Delay without sufficient cause can attract penal interest at 12% a year.
Which law governs EDLI now?
The Employees' Deposit Linked Insurance Scheme, 2026 (G.S.R. 526(E), 29 June 2026), made under the Code on Social Security, 2020. It replaced the EDLI Scheme, 1976.