Insurance Capped at ₹7 Lakh Despite EPF Wage Limit Hike: How to Claim?

The EPF wage limit has been raised to ₹25,000, yet the EDLI insurance cover remains capped at ₹7 lakh. Nominees can file a claim in the event of an employee's death. Here is how to claim it.

If you are employed, the PF contributions deducted from your salary help meet your future needs. However, consider the significant hardship a family might face if an employee passes away during their service. In such situations, an EPFO ​​scheme known as Employees' Deposit Linked Insurance (EDLI) provides financial support to the family.

Wage Limit Raised from ₹15,000

Significantly, the government has raised the mandatory EPF coverage wage limit from ₹15,000 to ₹25,000, effective September 17, 2026. Previously, employees earning more than ₹15,000 were not mandatorily covered under PF; now, eligible employees can also avail of this benefit, which will prove useful after retirement. However, it is important to note that despite the increase in the wage limit, the maximum insurance payout under EDLI remains ₹7 lakh.

About EDLI

EDLI is an insurance scheme associated with the EPFO. Under this scheme, if an employee passes away during their tenure, financial assistance is provided to the eligible nominee or legal heir. A key feature is that the employee does not need to purchase a separate insurance policy; benefits are determined based on the employee's eligibility and applicable rules.

How to Claim?

It is important to note that if an EPF member passes away while in service, the nominee or legal heir can claim EDLI insurance benefits by following a specific procedure.

To avail of the EDLI insurance benefit, the prescribed form must be filled out.

Subsequently, the filled-out form requires verification by the employee's last employer.

For this process, you must submit the employee's death certificate and the nominee's bank account details.

The verified form and necessary documents must then be submitted to the EPFO ​​office.

The claim will be approved following a verification of the documents and eligibility.

Once approved, the claim amount is transferred to the beneficiary's bank account.

Will the EDLI cover increase?

Regarding the potential increase in the EDLI insurance cover, there have been demands to raise the limit from ₹7 lakh to ₹10.5 lakh. However, no information has been released yet regarding the implementation of such an increase; benefits are currently provided based on existing rules.