EPFO Update: Nominee to Get ₹50,000 Even If PF Account Has Zero Balance

The Employees’ Provident Fund Organization (EPFO) has made big changes in the Employees’ Deposit Linked Insurance (EDLI) scheme. Now, the rules to get the benefit of this scheme are not strict. This change will help lakhs of employees and their families. It will give special support to those families whose earning member dies while working.

Now, the Minimum Insurance Amount is Guaranteed

The Union Ministry of Labour and Employment has said that if an employee dies during the job, then his family will get at least ₹50,000 from the insurance scheme, even if there is not enough money in the PF account. Earlier, it was necessary to have at least ₹50,000 in the account to get this benefit. Now this rule has been removed.

60-Day Job Gap Not Considered a Break

Another important change is that if there is a job gap of up to 60 days between two jobs, it will not be counted as a break in service. This means, even if someone changes jobs with a small gap, it will not affect the 12-month continuous service condition. This change will help many employees who worked in different companies but had a small gap in between.

Benefit Available Even After 6 Months of Death

As per the new rules, if an employee dies within 6 months of receiving the last salary, then the nominee will still get the EDLI scheme insurance benefit. Even if PF was not deducted recently, the nominee will get the claim.

What is the EDLI Scheme?

The Employee Deposit Linked Insurance (EDLI) scheme runs under EPFO. Its aim is to provide insurance help to the family of an employee who dies while working. The employee does not have to pay anything for this scheme. In case of death, the legal heir or nominee gets a one-time insurance amount. This amount can be between ₹2.5 lakh and ₹7 lakh.