If you have a job, this update is important for you. The Employees’ Provident Fund Organization (EPFO) has made key changes to the Employees’ Deposit Linked Insurance (EDLI) scheme.
These updates were approved in the 237th meeting of the Central Board of Trustees (CBT), led by Union Labor Minister Mansukh Mandaviya.
Minimum Insurance for Early Deaths
The government has introduced a new rule to support families in case of an early death.
If an employee who is part of the EPF scheme passes away within one year of starting their job, their family will now receive a minimum insurance benefit of ₹50,000. Earlier, no benefits were given in such cases.
EDLI Benefits Even After Job Gaps
Support for Non-Contributing Employees
Previously, if an employee had stopped contributing to EPF due to a job gap and then passed away, their family was not eligible for EDLI benefits.
Now, if an employee dies within six months of their last contribution, their family can still claim the benefits—unless their name has been officially removed from the company’s records. This change is expected to help more than 14,000 families each year.
Job Switches and EDLI Eligibility
Earlier, even a short gap of a day or two between jobs could lead to a loss of EDLI benefits.
Under the new rules, a gap of up to two months between jobs will be treated as continuous service, ensuring employees remain eligible for benefits.
This update is expected to help over 1,000 families each year and increase the number of beneficiaries to over 20,000 annually.
These changes bring much-needed relief to employees and their families, offering greater financial security during challenging times.
