If you are employed in the private sector and are a member of the Employees’ Provident Fund Organisation (EPFO), you are eligible for the benefits of the Employees’ Deposit Linked Insurance (EDLI) scheme.
This scheme, which was introduced in 1976, provides financial assistance to the family of a deceased EPFO member.
How Much Financial Assistance is Provided?
Under the EDLI scheme, the family of a deceased EPFO member can receive financial assistance ranging from a minimum of Rs 2.5 lakh to a maximum of Rs 7 lakh.
Before 2021, the financial assistance ranged from Rs 1.5 lakh to Rs 6 lakh, but this was increased in 2021.
While the scheme was initially set to expire on April 27, 2024, the government has decided to extend the benefits indefinitely, ensuring that there is no need for a new notification.
Recent Changes to the EDLI Scheme
In a recent meeting of the Central Board of Trustees (CBT) of EPFO, headed by Union Labor Minister Mansukh Mandaviya, new changes were approved to the EDLI scheme.
One key change is that if an employee dies within the first year of starting their job, their family will receive a minimum of Rs 50,000 under the EDLI scheme.
This new rule aims to support over 5,000 families annually.
What Are the Benefits of the Recent Changes?
According to the new rules, if an employee dies within six months of making their first contribution to the EPF, their family will still be eligible for the EDLI benefits, provided their name has not been removed from the payroll.
Previously, employees did not qualify for EDLI benefits if there was even a short gap between jobs.
Under the new rule, a gap of up to two months between jobs will be considered continuous service, ensuring coverage for more families.
These changes are expected to benefit thousands of families, as approximately 14,000 cases of job-related deaths occur annually, with many employees having short gaps between jobs.
