The Employees’ Provident Fund Organisation (EPFO) has introduced key revisions to the Employees’ Deposit Linked Scheme (EDLI) during its 237th Central Board of Trustees (CBT) meeting on February 28, 2025.
These changes aim to simplify the process of filing death claims for EPF family members and provide greater financial security. The new modifications will enhance insurance payouts and extend coverage to thousands of families annually.
1. Minimum EDLI Benefit for Death within One Year of Service
One of the major changes in the EDLI scheme is the introduction of a minimum life insurance payout for newly joined EPF members who pass away within their first year of service. As per the revised rule, the family members of the deceased EPF member will receive a minimum insurance benefit of Rs. 50,000.
A minimum life insurance benefit of Rs. 50,000 will be provided in cases where an EPF member dies without completing one year of continuous service. This amendment is expected to result in higher benefits for more than 5,000 cases of deaths in service every year, stated the EPFO in its press release.
2. Extension of EDLI Death Benefit After Non-Contributory Period
Previously, if an EPF member died while still employed but after a non-contributory period, the death claim under the EDLI benefit was denied. These cases were considered as deaths occurring outside active service.
Under the new amendment, if an EPF member passes away within six months of the last contribution received in their EPF account and their name is not removed from the payroll, their family members will now be eligible for the EDLI death benefit.
3. Consideration of Service Continuity Despite Employment Gaps
Another crucial modification addresses the issue of service continuity in cases of job gaps. Earlier, family members of deceased EPF members were denied the minimum Rs. 2.5 lakh or maximum Rs. 7 lakh EDLI benefit if there was even a short employment gap. This was because the continuous service condition of one year was not met.
Under the revised rules, a gap of up to two months between two employment spells will now be considered as continuous service, ensuring eligibility for the higher quantum EDLI benefits. This change is expected to benefit over 1,000 cases of deaths in service annually.
Expected Beneficiaries of the EDLI Revisions
These changes in the EDLI scheme will significantly enhance the social security benefits available to the families of EPF members. The revised eligibility criteria for death benefits will ensure that families do not face financial hardships due to technical disqualifications in the earlier regulations.
The EPFO estimates that these amendments will benefit thousands of families each year.
- Minimum EDLI benefit for early deaths: 5,000+ cases annually.
- Death benefit extension after non-contributory period: Several thousand cases.
- Service continuity for EDLI despite employment gaps: 1,000+ cases annually.
Conclusion
With these modifications, EPFO has taken significant steps toward enhancing social security for EPF members and their families.
The revised policies aim to provide a more inclusive and financially supportive framework, ensuring that families of deceased EPF members receive adequate insurance benefits without unnecessary procedural challenges.
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