‘Increase maximum EDLI benefit to Rs 10.50 lakh’: Why this BJP MP wants government to take immediate action

Bharatiya Janata Party (BJP) Rajya Sabha member of Parliament Ajit Gopchade has written a letter to Prime Minister Narendra Modi to increase the maximum cover under the Employees' Deposit Linked Insurance Scheme (EDLI) from Rs 7 lakh to Rs 10.50 lakh. Citing the hike in the Employees’ Provident Fund (EPF) wage ceiling from Rs 15,000 to Rs 25,000, a 67% rise, the MP also wants the government to examine the possibility of proportionately increasing the maximum EDLI cover to Rs 11.67 lakh.

The EDLI scheme is a life insurance policy for Employees' Provident Fund (EPF) members. Under the EDLI scheme, on the death of an EPF member during service, their nominee gets a minimum of Rs 2.5 lakh and a maximum of Rs 7 lakh as the insurance amount.

While the government has increased the EPF wage ceiling, it has not increased the ELDI maximum cover. The EDLI for an EPF member is calculated at their wage ceiling.


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What does the MP want from PM Modi about the maximum EDLI cover?

Gopchade writes that while the wage ceiling has been increased from Rs 15,000 to Rs 25,000, the maximum EDLI insurance benefit should also be reviewed and suitably enhanced.

Gopchade recommends enhancing the maximum EDLI cover from 7 lakh to at least Rs 10.50 lakh as an immediate measure, in view of the 66.67% increase in the EPFO wage ceiling.

Gopchade further wants the government to undertake an actuarial and financial review of the EDLI scheme to examine the proportionate enhancement of the maximum benefit.

“The existing Rs 7 lakh EDLI benefit corresponding to a Rs 15,000 wage ceiling would translate to approximately Rs 11.67 lakh at a Rs 25,000 wage ceiling,” writes Gopchade in his letter.

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How is the maximum EDLI cover calculated for EPF members?

According to the EDLI 2026 scheme, the formula to calculate the EDLI insurance amount is:

EDLI benefit = (Average monthly salary of last 12 months x 35) capped at Rs 15,000 + 50% of the last 12-month average EPF balance preceding the month of employee’s death.

EDLI benefit= (Rs 15,000 x 35) + Rs 1,75,000= Rs 7,00,000

But if we calculate the EDLI benefit at a Rs 25,000 wage ceiling, the maximum cover will be Rs 10.50 lakh.

Puneet Gupta, partner, People Advisory Services-Tax, EY India, explains that the wage ceiling under the EPF framework serves several important functions.

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Gupta says these include determining the mandatory coverage of employees under the EPF, the salary up to which statutory EPF contributions are required, eligibility for pension membership under the Employees’ Pension Scheme (EPS), and calculation of contributions under the EDLI Scheme.

“An increased ceiling is expected to enhance retirement savings and social security coverage for employees,” says Gupta.

However, an increased EPF wage ceiling doesn’t mean that the maximum EDLI cover will be automatically increased. It is still Rs 7 lakh and will remain so till the government notifies the new cover amount.