---
title: "Ministry of Labour and Employment notifies the Employees’ Deposit Linked Insurance Scheme, 2026, superseding the Employees’ Deposit-Linked Insurance Scheme, 1976."
date: 2026-07-27
author: "King Stubb & Kasiva"
url: https://ksandk.com/newsletter/employees-deposit-linked-insurance-scheme-2026/
---

# Ministry of Labour and Employment notifies the Employees’ Deposit Linked Insurance Scheme, 2026, superseding the Employees’ Deposit-Linked Insurance Scheme, 1976.

Posted On - 27 July, 2026 • By - King Stubb & Kasiva

The Ministry of Labour and Employment has notified the **Employees’ Deposit Linked Insurance Scheme, 2026** (“EDLI Scheme”) through Notification G.S.R. 526(E) dated June 29, 2026. The Scheme supersedes the Employees’ Deposit-Linked Insurance Scheme, 1976, and introduces updated provisions for employer contributions, assurance benefits, exemptions, and claims settlement.

## Background and Applicability

The EDLI Scheme has been notified under **clause (c) of sub-section (1) of Section 15** of the Code on Social Security, 2020, in supersession of the Employees’ Deposit-Linked Insurance Scheme, 1976.

The Scheme applies to employees of every establishment to which **Chapter III of the Code** applies. The net assets of the erstwhile 1976 scheme stand vested in, and transferred to, the Insurance Fund constituted under the new Scheme.

## Employer Contribution Obligations

Under the EDLI Scheme, 2026, employers must contribute to the **Insurance Fund** based on employees’ wages. Key requirements include:

- Contributions are calculated on employees’ wages, subject to the **prescribed wage ceiling**.
- Both the contribution and administrative charges must be deposited electronically within 15 days after the end of each month.
- These contributions *cannot* be recovered from employees’ wages.

Defaulting employers who fail to make timely contributions may be liable to **damages at the rates specified** under the Employees’ Provident Funds Scheme, 2026.

## Assurance Benefit on Death in Service

Where a member dies while in service, their **nominee or legal heir** is entitled to an assurance benefit. The amount of the benefit depends on the following factors:

- The employee’s **provident fund balance**
- The employee’s wages
- The employee’s length of service

The Scheme prescribes both **minimum and maximum benefit limits**.

## Exemption from the Scheme

Establishments may seek **exemption from the EDLI Scheme** by obtaining an IRDAI-approved group insurance policy. The policy must provide benefits more favourable than those under the Scheme, subject to prescribed conditions.

## Claims Settlement and Delayed Payment Interest

Claims for assurance benefits must be settled within **20 days** of receiving a complete application.

Delays without sufficient cause attract interest at **12% per annum**, recoverable from the responsible Commissioner.

*Last Updated on 27 July, 2026*

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