EPFO: In recent days, the Employees’ Provident Fund Organization (EPFO) has implemented several changes to its regulations. Additionally, it has introduced a variety of new services aimed at enhancing convenience for millions of its members. Notably, the pension authority has revised the rules governing the Deposit Linked Insurance Scheme (EDLI) during a recent meeting of the Central Board of Trustees (CBT). It is important to note that during this meeting, the CBT resolved to maintain the EPF interest rates for the financial year 2025.
Family will receive a life insurance benefit of Rs 50,000
The EPFO has amended the rules concerning minimum insurance for short service. Under the new provisions, if a member passes away before completing the required service period, their family will receive a life insurance benefit of Rs 50,000. This initiative is anticipated to assist approximately 5,000 individuals annually.
EDLI benefits norms
Previously, if there was a brief interruption in employment, such as a Sunday or a holiday, the member would not qualify for EDLI benefits due to a lack of continuous service. However, the new regulations now allow for a gap of up to two months between jobs to be recognized as continuous service. This change enables members to access EDLI benefits ranging from ₹2.5 lakh to ₹7 lakh, potentially aiding around 1,000 cases each year.
Furthermore, if a member passed away after a significant hiatus in EPF contributions, they were ineligible for the Deposit Linked Insurance Scheme (EDLI). With the recent rule modification, if a member dies within six months of their last contribution, they will be entitled to this benefit, provided their name is included on the employer’s list. This amendment is expected to benefit over 14,000 cases annually.
