Big changes in EPFO! You can now get free life insurance of up to ₹7 lakh. Whether you are a new member or planning to change jobs, this benefit is guaranteed. The Employees’ Provident Fund Organization (EPFO) has introduced important changes in the Employees’ Deposit Linked Insurance (EDLI) scheme. Under this scheme, free life insurance is provided to EPF account holders. In this article, we will share all the details about this update.
Insurance Amount Between ₹2.5 Lakh and ₹7 Lakh
If an EPF member passes away while working, their family or nominee will receive insurance money between ₹2.5 lakh and ₹7 lakh. The amount depends on the member’s salary over the last 12 months. This is a significant help for the family during difficult times.
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Changes for Early Deaths
Previously, if a person died within the first year of joining, their family did not receive any insurance. However, this change now ensures that if an EPF member dies within the first year, their family will still receive at least ₹50,000 in insurance.
Because family is everything, protect them with up to ₹7 lakh insurance coverage through the EDLI Scheme. With no contribution needed from you, this is a promise from your employer to stand by your loved ones, ensuring their future is safe even when you’re no longer around. pic.twitter.com/38ilsk6WZ5
— Ministry of Labour & Employment, GoI (@LabourMinistry) March 11, 2025
Other Benefits Available
The EPFO has also reduced the penalty for late payment of Provident Fund (PF) contributions to just 1% per month. This will relieve companies that are late in paying PF and encourage them to comply with the rules more effectively.
Benefits of the EDLI Scheme
- The EDLI scheme provides free insurance coverage to an employee’s family in case of their death during active service.
- The employer’s contribution to EDLI is minimal, but the financial benefit for the deceased employee’s family is significant.
- There are no exclusions under the EDLI scheme, so all employees are covered, regardless of their designation or salary.
- The employee’s family will receive the death benefit even if the employee passes away in a foreign country.
- The EDLI scheme is a welfare measure supported by employers and the government, ensuring life insurance benefits.
- It boosts employees’ morale by offering insurance coverage and securing their families’ futures.