The Employees’ Provident Fund Organization (EPFO) has introduced new rules and services to benefit its members.
These updates were recently approved during the Central Board of Trustees (CBT) meeting. Additionally, EPFO has decided to retain the EPF interest rate for the financial year 2025.
Minimum Insurance Benefit for Short Service
EPFO has revised the minimum insurance benefit rules. If a member passes away before completing their job term, their family will now receive a life insurance benefit of ₹50,000.
This update is expected to support around 5,000 families every year.
Changes in the EDLI Scheme and Service Continuity
Previously, members who passed away long after their last EPF contribution were not eligible for the Deposit Linked Insurance Scheme (EDLI).
Under the new rule, if a member dies within six months of their last contribution, they will now receive EDLI benefits.
However, their name must be present in the employer’s records. This change is expected to benefit over 14,000 cases annually.
Additionally, EPFO has modified service continuity rules. Earlier, even a short job gap of one or two days due to weekends or festivals could affect EDLI eligibility.
Now, a gap of up to two months between jobs will still be considered continuous service.
This ensures members can receive EDLI benefits ranging from ₹2.5 lakh to ₹7 lakh, helping about 1,000 people every year.
Improved Security and Flexibility for Members
These updates aim to provide better financial security and flexibility for EPFO members.
By ensuring continued insurance benefits and reducing strict eligibility conditions, EPFO is enhancing protection for workers and their families.
