The Employees’ Provident Fund Organisation (EPFO) has issued a clarification regarding Employees’ Deposit Linked Insurance (EDLI) claims.
The clarification comes after instances where EDLI benefits were being denied or reduced because minor gaps between jobs were incorrectly treated as a break in service.
For example, if a Saturday or Sunday fell between an employee leaving one establishment and joining another, it was sometimes counted as a break in service.
This caused some families to be denied EDLI benefits, even if the employee had worked for over 12 months in total.
What the New EPFO Clarification Says
According to the EPFO circular dated 17 December 2025, continuous service rules have been clarified and updated:
Saturdays, Sundays, weekly offs, national holidays, gazetted holidays, state holidays, and restricted holidays will not be counted as a break in service.
Service across multiple establishments under the EPF & MP Act, 1952, will be considered continuous if only such holidays separate the exit and joining dates.
This ensures that employees’ families receive full EDLI benefits, without being penalized for short, non-working gaps between jobs.
This clarification follows updates in government notifications aimed at removing anomalies in continuous service interpretation.
EPFO Directives to Regional Offices
The EPFO has directed all Regional PF Commissioners to ensure these guidelines are followed while processing EDLI claims.
Additionally, the IS Division has been asked to update the EDLI module so that claims are processed correctly according to the revised rules.
This update is crucial for employees and their families, ensuring no wrongful denial or reduction of EDLI benefits due to minor gaps or holidays between jobs.