The Employees’ Provident Fund Organization (EPFO) has made important updates to the Employees’ Deposit Linked Insurance (EDLI) scheme.
These changes will make it easier for employees and their families to get insurance benefits, especially in cases where the earning member passes away during employment.
The new rules remove strict conditions and provide better support to lakhs of employees across the country.
Guaranteed Minimum Insurance Amount
The Ministry of Labor and Employment has announced that if an employee dies while still employed, their family will now be guaranteed an insurance payout of at least ₹50,000, even if the employee’s Provident Fund account doesn’t have that much money.
Earlier, to get this benefit, the account needed to have a minimum of ₹50,000 deposited. Now, this condition has been removed.
60-Day Job Gap Will Not Break Continuity
A new rule says that if an employee has a break of up to 60 days between two jobs, it will not be treated as a break in service.
This means that the 12 months of continuous service required for claiming EDLI benefits will still be counted, even if there’s a short gap. This will help employees who switch jobs with small breaks in between.
Benefit Valid for 6 Months After Death
Another helpful rule is that if an employee dies within 6 months of receiving their last salary, their nominee will still be eligible for the EDLI insurance benefit.
So, even if PF deductions stopped up to 6 months ago, the family can still claim the insurance.
What is the EDLI Scheme?
The Employee Deposit Linked Insurance (EDLI) Scheme is managed by EPFO and provides life insurance to employees of the organized sector.
The employee does not need to contribute anything separately to this scheme.
If the employee dies during their job, their legal heir or nominee receives a lump sum insurance amount ranging from ₹2.5 lakh to ₹7 lakh, depending on eligibility.
