If you are employed, this news is crucial for you. The Employees’ Provident Fund Organization (EPFO) has introduced significant changes to the Employees’ Deposit Linked Insurance (EDLI) scheme.
These changes were approved in the 237th meeting of the Central Board of Trustees (CBT), chaired by Union Labor Minister Mansukh Mandaviya.
Minimum Benefit for Early Deaths
The ministry has announced that if an EPF member passes away within one year of starting their job, their family will now receive a minimum life insurance benefit of ₹50,000. Previously, no benefits were provided in such cases.
EDLI Benefits Even Without Recent Contributions
Earlier, if an employee died after a period of non-contribution (such as a job gap), their family was not eligible for EDLI benefits.
Now, if an employee passes away within six months of their last contribution, their family can still claim the benefits—provided their name has not been removed from the company’s records. This change is expected to help over 14,000 families every year.
Relief for Job Gaps Between Employment
Previously, if an employee switched jobs and had even a one- or two-day gap (such as weekends or holidays) between employment, they would lose EDLI benefits.
Now, under the new rules, a gap of up to two months between jobs will be considered as continuous service, ensuring eligibility for benefits.
This change is expected to help over 1,000 families each year and increase the number of people receiving higher EDLI benefits to over 20,000 annually.
These amendments bring much-needed relief to employees and their families, ensuring better financial security in difficult times.