The Employees’ Provident Fund Organization (EPFO) has announced important changes in the Employees’ Deposit Linked Insurance (EDLI). The Central Board of Trustees (CBT), chaired by Union Labour Minister Mansukh Mandaviya, has given the green signal to these amendments in its 237th meeting. These changes will provide a strong financial security cover for millions of families.
Families will get relief
Minimum insurance for short service period: Under this scheme, a minimum insurance benefit of Rs 50,000 has been introduced in case of the member’s death within one year of starting the service. This will benefit more than 5,000 families annually. This change is an important safety net for families who have lost their loved ones quickly.
Coverage for the non-contribution period
If an EDLI member dies within six months of the last contribution to the account, their family members will be entitled to benefits under the scheme. Provided their name is not removed from the payroll. Around 14,000 cases will be covered annually under this amendment. This is an important protection for families who have lost their loved ones in accidental circumstances.
Relaxation in service continuity rules
Earlier, if there was even a very short gap between two jobs, members were not able to avail EDLI benefits. Under the new rule, if there is a gap of up to two months between jobs, it will be considered continuous service. This change is important for those who keep changing their jobs.
According to the PIB report, these amendments in the EDLI scheme will increase the financial security of more than 20,000 families every year. This change will help keep families financially stable.
Recommendation of 8.25%
The CBT has recommended an annual interest rate of 8.25 percent for EPF members. This will be officially communicated by the government before it is credited to the account. This will ensure that members get a fair return on their investment.
Pension, penalty, and budget
- The EPFO has disposed of 72 percent of applications related to the Supreme Court verdict on eligibility for higher pension.
- From January 2025, pensions under the Centralised Pension Payment System (CPPS) will be paid through a centralized account in the New Delhi branch of SBI.
- To reduce litigation, the penalty for delay in PF payment has been fixed at 1 percent per month.
- The board has also approved the revised budget estimates for 2024-25 and the planned allocation for 2025-26.