The Employees’ Provident Fund Organisation (EPFO) has issued an important clarification regarding Employees’ Deposit Linked Insurance (EDLI) Scheme claims.
Earlier, some death claim cases under EDLI were being denied or settled for a reduced amount.
This happened because minor gaps in employment were being interpreted as a “break in service,” even when the employee had actually worked continuously across multiple jobs.
For example, Saturdays and Sundays between leaving one job and joining another were sometimes counted as a break, even if the member had served more than 12 months in total.
This led to some families being wrongly denied EDLI benefits.
What EPFO Has Clarified
EPFO referred to Government notifications from 2021 and 2025, which define continuous service for EDLI purposes.
According to the clarification:
Saturdays, Sundays, weekly offs, national holidays, gazetted holidays, state holidays, and restricted holidays are not considered a break in service.
Continuous service is recognized if the gap between leaving one establishment and joining another is only due to such holidays or weekly offs.
In simple terms, minor breaks caused by holidays or weekly offs do not affect eligibility for EDLI benefits.
Steps EPFO Will Take
The EPFO has directed its Regional PF Commissioners to follow this clarification while processing EDLI claims.
The IT division has also been asked to update the EDLI module to ensure claims are processed correctly according to the new rules.
This update ensures that families of deceased employees receive their rightful EDLI benefits without being penalized for minor gaps caused by holidays or weekends.
