Big news for EPFO members. The Employees’ Provident Fund Organization (EPFO) has rolled out some significant updates to the Employees’ Deposit Linked Insurance (EDLI) scheme. These changes were greenlit during the 237th meeting of the Central Board of Trustees (CBT), which was led by Union Labor Minister Mansukh Mandaviya.
So, what’s new?
The ministry announced that the CBT has approved a minimum death benefit for those who pass away within their first year of service. If an EPF member dies before completing a year of continuous service, their beneficiaries will receive a minimum life insurance payout of Rs 50,000.
Coverage even without contributions
Additionally, the CBT has approved benefits for members who die while still in service but after a period without contributions. Previously, if a member was considered out of service, they wouldn’t qualify for EDLI benefits. Now, if a member dies within six months of their last contribution and their name is still on the rolls, they will be eligible for EDLI benefits. This change is expected to help over 14,000 cases of such deaths annually.
Support even with job gaps
The CBT has also given the green light to a proposal that allows for service continuity under the scheme. Previously, if there was a gap of just one or two days (like weekends or holidays) between jobs, members would be denied the minimum EDLI benefit of Rs 2.5 lakh and a maximum of Rs 7 lakh because they hadn’t met the one-year continuous service requirement.
With the new changes, a break of up to two months between jobs will now count as continuous service, making people eligible for EDLI benefits. This update is likely to help over 1,000 families dealing with service-related deaths each year. Plus, it’s projected that these amendments will lead to more than 20,000 cases of service-related deaths receiving increased benefits under EDLI annually.