Deposit Linked Insurance Scheme

Employees Deposit Linked Insurance Scheme (EDLIS), 1976


Employer – Provident Fund Act applies to factories and other notified establishments employing 20 or more persons. Once an establishment is covered, its departments and branches, wherever they are, are covered. Once establishment is covered, it continues to get covered even if employment goes below 20.

Employee – Every employee employed in or in connection with the work of a factory or other establishment to which this scheme applies, other than an excluded employee (an employee who, having been a member of the Fund, withdrew the full amount of his accumulations in the Fund or an employee whose pay at the time he is otherwise entitled to become a member of the Fund, exceeds Rs. 15,000/- pm), shall be entitled and required to become a member of the Fund from the day this paragraph comes into force in such factory or other establishment.

Deposit-Linked Insurance Fund:

The amount received as the employer’s contribution and also the Central Government’s contribution to the Insurance Fund shall be credited to “Deposit-Linked Insurance Fund Account” and all expenses towards the cost of any benefits provided by or under the Scheme shall be met out of this account.


Where the monthly pay of an employee exceeds Rs. 15000/- the contribution payable in respect of him by the employer and the Central Government shall be limited to the amounts payable on a monthly pay of Rs. 15000/-.