EPFO, or the Employees’ Provident Fund Organization, has introduced three significant updates to the Employees’ Deposit Linked Insurance (EDLI) Scheme. These changes aim to ease the financial burden on families facing uncertainty after the unexpected death of an EPF member. The decisions made during the 237th EPFO meeting are set to positively impact millions of families each year, particularly by streamlining the death claim process and enhancing security. Let’s dive into the new changes and how they can benefit you.
1. EDLI benefits now available for less than a year of service
Previously, if an EPF member passed away before completing one year of service, their family would not receive the EDLI death benefit. This rule has now been revised. Families will now receive a minimum insurance payout of Rs 50,000 even if the EPF member dies within their first year of service. This change is expected to assist over 5,000 families annually.
2. Benefits extended after a non-contributory period
In the past, if an EPF member stopped contributing for a while and then passed away, their family would not qualify for the EDLI benefit. This has now been updated.
New Rule: If an EPF member dies within six months of their last contribution and remains on the company’s payroll, their family will be eligible for the EDLI death benefit. This adjustment will benefit around 14,000 families each year.
3. Coverage during job transitions
Previously, if an EPF member had a gap of 1-2 days between jobs, it was treated as a break in service, which meant their family would miss out on the Minimum EDLI benefit (Rs 2.5 lakh) and Maximum death benefit (Rs 7 lakh). Now, even if there’s a two-month gap between jobs, it will still be considered continuous service. This change will directly benefit over 1,000 families each year.
What is the EDLI scheme?
Launched in 1976, EPFO’s EDLI scheme provides life insurance coverage for EPF members. If an employee passes away while employed, their family will receive financial support.
EPF Interest Rate for 2024-25: What Interest Can You Expect?
The EPFO has revealed the interest rate for the financial year 2024-25, which is set at 8.25% for EPF accounts. This rate will take effect following the government’s official notification.
How can your family maximize their benefits?
Make sure to regularly update your EPF nominee information.
When switching jobs, transfer your EPF account to maintain uninterrupted service.
Stay informed about any updates regarding the EPFO.