There is good news for account holders and employees of the Employees’ Provident Fund Organization (EPFO).
The Modi government has announced a significant benefit for 6 crore EPFO members ahead of Diwali.
The central government will extend the Employees’ Deposit Linked Insurance (EDLI) scheme starting from April 28, 2024.
Increased Insurance Benefits
Union Labor Minister Mansukh Mandaviya has confirmed that all members of the EPFO will receive enhanced insurance benefits under the EDLI scheme.
This means that EPFO members will now have life insurance coverage of up to Rs 7 lakh.
This change aims to provide better financial protection to over 6 crore EPFO members and their families.
What is the EDLI Scheme?
The EDLI scheme was launched in 1976 to offer insurance benefits to EPFO members.
Its main goal is to ensure that when an EPFO member passes away, their family does not face financial difficulties. The scheme provides financial support to the families of the members.
How to Access the Benefits
Under the EDLI scheme, until April 2021, the maximum benefit for the legal heirs of deceased employees was Rs 6 lakh.
However, a new notification has increased the minimum benefit to Rs 2.5 lakh and the maximum benefit to Rs 7 lakh.
This adjustment will be effective for three years until April 27, 2024.
Additionally, the requirement for 12 months of continuous service in an establishment has been relaxed, allowing employees who change jobs during that time to be covered.
As per the recent notification, employees will now receive life insurance benefits of Rs 7 lakh starting from April 28, 2024.
