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

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