EDLI Scheme Update: Family to Get ₹50,000 Even If PF Account Has No Balance

There is good news for employees. The government has clarified that if an employee dies while working, the family will receive an insurance amount of at least ₹50,000. This benefit will be given even if there is not ₹50,000 in the employee’s PF account. Earlier, the rule was that the PF account must have a minimum balance of ₹50,000 to claim the insurance benefit. But now, the rule has been changed. The Union Ministry of Labour and Employment has relaxed the rules under the EDLI scheme. The ministry has also said that if an employee has worked continuously for 12 months, their family will still get the insurance amount. Even if there is a gap of up to 60 days between jobs, it will still be counted as continuous employment.

You Will Get Benefits Even If You Leave the Job in Between

A big relief has come in the new rules. If someone leaves a job and joins a new one after a short break, they will still get the benefit of the scheme. If the gap between two jobs is less than 60 days, it will be considered as continuous employment. This means that even if an employee has worked in two different companies with a gap of less than 60 days, they will still be eligible for the insurance benefit.

This Rule Has Also Changed

The central government has also changed another rule. If an employee dies within 6 months of receiving the last salary, the family will still get the insurance benefit. According to the Ministry, if any EPFO member dies within 6 months after the last PF deduction from their salary, their family will receive the insurance amount under the scheme.

What Is the EDLI Scheme?

The Employees’ Deposit Linked Insurance (EDLI) Scheme is run by the Employees’ Provident Fund Organization (EPFO). It provides insurance to employees in the organized sector in case of death during service. The legal heir or family of the employee receives a lump sum amount under this scheme. The special part is that employees do not have to pay anything for this insurance—it is provided automatically through EPFO membership.