Ministry of Labour and Employment has formally notified relaxed eligibility criteria for Employees’ Deposit Linked Insurance (EDLI) scheme under Employees’ Provident Fund Organisation (EPFO).
The Central Board of Trustees approved these changes in February 2025, and they were officially notified on July 18.
They aim to strengthen financial protection for families of deceased employees, especially those with short service durations or irregular work histories.
Minimum Assurance Benefit of ₹50,000 Now Guaranteed
The revised guidelines ensure that the family of a deceased EPF member is eligible for a minimum assurance benefit of ₹50,000.
This applies even when the employee’s average provident fund balance is lower than the specified amount.
This provision resolves a long-standing issue faced by families of low-income or short-tenure employees.
Many previously received inadequate financial support due to their low provident fund balances.
The move is expected to benefit over 5,000 families annually, particularly those affected by untimely deaths within the first year of employment.
The EDLI scheme, which operates as a social security measure, previously required a minimum PF balance to qualify for the benefit, often excluding vulnerable groups.
Service Continuity Redefined to Include Employment Gaps
A major change in the notification is the redefinition of continuous service.
Previously, even short breaks between jobs—such as weekends or holidays—could disqualify employees from receiving the full EDLI benefit.
The new rules now allow gaps of up to 60 days between two spells of employment to be treated as continuous service.
This adjustment is particularly relevant for contract workers, temporary staff, and those frequently switching jobs.
The update is expected to benefit over 1,000 families each year. It ensures that minor gaps in employment no longer lead to the denial of insurance coverage.
EDLI Coverage Extended for Non-Contributory Periods
Another significant update ensures that EDLI benefits remain accessible to employees who die within six months of their last PF contribution.
This applies as long as they are still listed on the employer’s payroll.
This change covers employees who temporarily stopped contributing due to unpaid leave or administrative delays.
Despite these interruptions, they remained formally employed and are now eligible for EDLI benefits.
The Labour Ministry estimates that this provision will extend coverage to more than 14,000 families each year.
It offers relief to dependents who were previously denied benefits due to technical lapses in contribution records.
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