The Ministry of Labour and Employment has officially notified the Employees’ Deposit Linked Insurance Scheme, 2026 (EDLI Scheme 2026) through Gazette Notification No. G.S.R. 526(E) dated 29 June 2026. The new scheme has been framed under the provisions of the Code on Social Security, 2020 and replaces the long-standing Employees’ Deposit Linked Insurance Scheme, 1976.
The notification represents another major step in implementing the Social Security Code by modernising India’s employee insurance framework. Although the fundamental objective of providing life insurance protection to Employees’ Provident Fund (EPF) members remains unchanged, the scheme aligns various provisions with the Code on Social Security, 2020 and the newly notified Employees’ Provident Funds Scheme, 2026.
For millions of EPF subscribers, employers, HR professionals, payroll managers, and labour law practitioners, understanding the new EDLI Scheme is essential.
What is the Employees’ Deposit Linked Insurance (EDLI) Scheme?
The Employees’ Deposit Linked Insurance (EDLI) Scheme is a statutory life insurance scheme administered by the Employees’ Provident Fund Organisation (EPFO). It provides financial assistance to the nominee or legal heir of an EPF member in the unfortunate event of the member’s death while in service.
Unlike private life insurance policies, employees are not required to pay any premium under EDLI. The entire contribution is made by the employer as prescribed by the Government.
The newly notified Employees’ Deposit Linked Insurance Scheme, 2026 continues this social security benefit under the framework of the Code on Social Security, 2020.
Gazette Notification Details
| Particular | Details |
| Notification | G.S.R. 526(E) |
| Ministry | Ministry of Labour and Employment |
| Date of Notification | 29 June 2026 |
| Scheme | Employees’ Deposit Linked Insurance Scheme, 2026 |
| Legal Authority | Section 15(1)(c) of the Code on Social Security, 2020 |
| Effective Date | Date of publication in Official Gazette |
| Replaces | Employees’ Deposit Linked Insurance Scheme, 1976 |
Why Was the New EDLI Scheme Introduced?
The Government has replaced the 1976 scheme primarily to:
- Implement the provisions of the Code on Social Security, 2020.
- Synchronise insurance provisions with the Employees’ Provident Funds Scheme, 2026.
- Modernise administrative procedures.
- Introduce digital payment mechanisms.
- Ensure uniform terminology under the new labour codes.
- Provide better regulatory clarity for employers and EPFO authorities.
The notification does not abolish employee insurance protection. Instead, it updates the legal framework under which the insurance scheme operates.
Applicability of Employees’ Deposit Linked Insurance Scheme, 2026
According to Paragraph 1 of the notification, the scheme applies to:
- Every establishment covered under Chapter III of the Code on Social Security, 2020.
- Employees who are members of the Employees’ Provident Funds Scheme, 2026.
- Employees covered under exempted Provident Funds under Section 143 of the Code.
Therefore, every eligible EPF member automatically becomes eligible under the EDLI Scheme unless exempted as per law.
Important Definitions Under EDLI Scheme 2026
The notification introduces several important definitions.
Assurance Benefit
The scheme defines “Assurance Benefit” as the amount payable upon the death of an employee while being a Provident Fund member. The amount is linked with the average balance available in the employee’s Provident Fund account.
Insurance Policy
A Group Insurance Policy issued by an authorised Insurance Service Provider.
Commissioner
The scheme recognises the following EPFO officers:
- Central Provident Fund Commissioner
- Additional Central Provident Fund Commissioner
- Deputy Provident Fund Commissioner
- Regional Provident Fund Commissioner
- Assistant Provident Fund Commissioner
These officers are empowered under Section 14 of the Code.
Member
Any employee who is a member of:
- Employees’ Provident Funds Scheme, 2026, or
- An exempted Provident Fund under Section 143.
Nominee
A nominee is the person nominated under Paragraph 46 of the Employees’ Provident Funds Scheme, 2026 who will receive the assurance benefit after the death of the member.
Employer Contribution Under EDLI Scheme 2026
One of the most significant provisions relates to employer contribution.
The contribution payable to the Deposit Linked Insurance Fund shall be calculated on:
- Wages as defined under Section 2(88) of the Code on Social Security, 2020.
- Subject to the applicable wage ceiling under Section 2(89).
Unlike EPF contributions, employees are not required to contribute to the EDLI Scheme.
Only employers contribute towards the Insurance Fund.
The contribution rate will continue to be notified separately by the Central Government after consultation with the Central Board and considering actuarial valuation of the Insurance Fund.
Contribution Calculation Rules
The notification also prescribes the method of rounding off contributions:
- Fractions of 50 paise or more shall be rounded to the next higher rupee.
- Fractions below 50 paise shall be ignored.
This simplifies payroll calculations and accounting procedures.
Digital Mode of Contribution Payment
The EDLI Scheme, 2026 strongly emphasises digital payments.
Employers must deposit contributions and administrative charges:
- Within 15 days after the close of every month.
- Through electronic payment.
- Using authorised agency banks.
- Through RBI-listed scheduled banks.
- Via authorised payment gateways.
- Through the Government’s PayGov platform.
Any remittance cost is to be borne by the employer.
This provision aligns with the Government’s digital governance initiatives.
Employer Responsibility for Contract Labour
The notification makes it clear that employers remain responsible for depositing EDLI contributions for:
- Employees directly employed by them.
- Employees engaged through contractors.
This reinforces employer accountability and prevents avoidance of statutory obligations.
Administrative Powers of EPFO Commissioner
Paragraph 3 grants financial and administrative powers to the Commissioner. The Commissioner may sanction expenditure relating to:
- Administrative contingencies.
- Office supplies.
- Essential services.
- Purchase of articles.
- Insurance Fund administration.
These powers are subject to approved budget provisions and prescribed financial limits.
Application of EPF Scheme, 2026
Where the EDLI Scheme does not specifically provide a rule, the provisions of the Employees’ Provident Funds Scheme, 2026 shall automatically apply.
This creates consistency across EPF and EDLI administration while avoiding duplication of provisions.
Key Features of Employees’ Deposit Linked Insurance Scheme, 2026
The major highlights include:
- New scheme notified under the Code on Social Security, 2020.
- Replaces the Employees’ Deposit Linked Insurance Scheme, 1976.
- Applicable to EPF members covered under Chapter III.
- Employer-funded insurance benefit.
- No contribution from employees.
- Assurance benefit linked with Provident Fund balance.
- Mandatory digital payment of contributions.
- Employer responsible even for contractor employees.
- EPF Scheme, 2026 provisions applicable wherever required.
- Administrative powers delegated to EPFO Commissioner.
What Remains Unchanged?
Although the legal framework has changed, several important aspects remain broadly similar:
- Employees continue to receive insurance protection through EPFO.
- Employers remain responsible for contributions.
- Nominees continue to receive insurance benefits after the member’s death.
- Employees are not required to pay any insurance premium.
- EPFO continues to administer the scheme.
Impact on Employees
For employees, the notification largely ensures continuity of social security benefits under a modern legal framework. Existing EPF members remain covered, and there is no requirement for separate enrolment or contribution.
Employees should, however, ensure that:
- Their EPF account details are up to date.
- Nomination details are correctly filed under the EPF Scheme.
- Personal information is regularly updated to facilitate smooth settlement of claims.
Impact on Employers
Employers should review their payroll and compliance systems to ensure they align with the new scheme. Key action points include:
- Updating payroll software with references to the EDLI Scheme, 2026.
- Depositing contributions within the prescribed timeline.
- Using approved electronic payment channels.
- Covering both direct and contract employees where applicable.
- Maintaining accurate wage and contribution records.
Importance of Nomination
Since the assurance benefit is payable to the nominee, employees should ensure that their EPF nomination details are accurate and updated whenever there is a change in family circumstances. Proper nomination significantly reduces delays in claim settlement.
Frequently Asked Questions (FAQs)
What is the Employees’ Deposit Linked Insurance Scheme, 2026?
It is the new statutory insurance scheme notified under the Code on Social Security, 2020, replacing the Employees’ Deposit Linked Insurance Scheme, 1976.
When did the new EDLI Scheme come into force?
The scheme came into force on the date of its publication in the Official Gazette, i.e., 29 June 2026.
Does an employee contribute to EDLI?
No. Employees do not contribute. The entire contribution is paid by the employer.
Who is eligible under the scheme?
Employees who are members of the Employees’ Provident Funds Scheme, 2026 or eligible exempted Provident Funds covered under the Code.
How is the assurance benefit determined?
The notification states that the assurance benefit is linked to the average balance in the employee’s Provident Fund account. Detailed benefit calculations continue to be governed by the applicable provisions and notifications.
Is the old EDLI Scheme, 1976 still applicable?
No. The Employees’ Deposit Linked Insurance Scheme, 2026 supersedes the Employees’ Deposit Linked Insurance Scheme, 1976, except for actions already taken under the previous scheme.
How must employers pay contributions?
Employers must deposit contributions electronically within 15 days after the close of each month using authorised banking channels or the PayGov platform.
Conclusion
The Employees’ Deposit Linked Insurance Scheme, 2026 marks a significant transition from the nearly five-decade-old EDLI Scheme, 1976 to a modern framework aligned with the Code on Social Security, 2020. While the fundamental objective of providing financial protection to the families of EPF members remains unchanged, the new scheme introduces updated legal terminology, streamlined administration, and mandatory digital compliance.
For employers, timely electronic deposit of contributions and continued coverage of eligible employees—including contract workers—remain critical statutory obligations. For employees, ensuring accurate EPF nominations and updated account details is essential to facilitate seamless settlement of assurance benefits.
As more operational guidelines and related notifications are issued under the Social Security Code, employers, HR professionals, payroll administrators, and EPF members should stay informed to ensure full compliance and uninterrupted social security protection.