Employees’ Provident Fund Organisation (EPFO) has introduced significant amendments to Employees’ Deposit Linked Insurance (EDLI) scheme, aimed at strengthening financial security for the families of deceased EPF members.
These changes were approved during the 237th meeting of the Central Board of Trustees (CBT) on February 28, 2025.
They are expected to benefit thousands of families annually by enhancing insurance payouts and extending coverage.
Key Amendments to the EDLI Scheme
- Minimum Insurance Benefit for Short Service Tenure A key change is the introduction of a minimum life insurance benefit for EPF members. This benefit applies to members who pass away within one year of service. Previously, families of such members were not eligible for any benefits due to the lack of continuous service. The new rules ensure a minimum insurance payout of ₹50,000 for families of EPF members. This applies to members who pass away within their first year of employment. This amendment is expected to benefit over 5,000 cases annually.
- Eligibility for Death Benefits After Non-Contributory Periods Earlier, families of EPF members who died after a non-contributory period were often denied benefits. These cases were classified as deaths outside active service. The revised rules ensure that families are eligible for death benefits. This applies if the member passes away within six months of their last contribution. This eligibility is subject to the condition that the member’s name remains on the employer’s rolls. This change is anticipated to benefit over 14,000 cases annually.
- Recognition of Service Continuity Despite Employment Gaps Previously, short employment gaps, such as weekends or holidays during job transitions, disqualified families from receiving benefits. This was due to the strict requirement of continuous service. The new rules permit considering a gap of up to two months between two periods of employment as continuous service. This ensures eligibility for EDLI benefits ranging from ₹2.5 lakh to ₹7 lakh, benefiting over 1,000 cases annually.
Broader Implications of EPFO Amendments & Additional Announcements
These updates to the EDLI scheme reflect the commitment of EPFO to enhancing social security and employee welfare.
The new rules address gaps in the previous framework. They aim to provide better financial protection and alleviate hardships faced by families in distress.
The changes also align with the government’s broader objective of improving social security measures for the workforce.
The CBT recommended an annual interest rate of 8.25% for EPF subscribers. This rate applies to the fiscal year 2024-2025.
The government will officially announce this rate through a notification and credit it to subscribers’ accounts.
Note: We are also on WhatsApp, LinkedIn, Google News, and YouTube, to get the latest news updates, Subscribe to our Channels. WhatsApp– Click Here, Google News– Click Here, YouTube – Click Here, and LinkedIn– Click Here.
