EPFO EDLI Scheme: PF is very important for every employed person. PF money is useful after retirement, as well as during the job you can also use it as an emergency fund. EPFO ​​has recently announced important changes in its Deposit Linked Insurance Scheme (EDLI). Under this, now those EPF account holders will also get insurance benefits, who die within a year. Also, insurance benefits will be available even on changing jobs. This change will give relief to crores of employees and their families.

What was the rule earlier

Earlier, if an employee died before a year, his family did not get the benefit of insurance. But now this rule has been changed, under which if an EPF member dies before a year, his family will get insurance of Rs 50,000.

Insurance will be available even on changing jobs

Apart from this, EPFO ​​has also made a big change in the rule related to the gap in changing jobs. Now if the employee leaves one job, but there is a gap of two months in the second job, he will still get the benefit of insurance. That is, according to the new rule, the employee will get insurance of Rs 2.5 to 7 lakh. This change will benefit the families of more than 1000 employees every year.

Companies also got relief

Apart from this, EPFO ​​has also given relief to companies on delay in depositing PF money. Now the penalty on this has been reduced to just 1 percent every month.

What is the EDLI scheme

EPFO’s Employee Deposit Linked Insurance Scheme, 1976 (EDLI) is a scheme that provides life insurance cover to the employees of the organized sector. Let us tell you that every employee associated with EPFO ​​gets the benefit of life insurance up to Rs 7 lakh. The monthly premium to be deposited for this insurance has to be paid not by the employee but by the employer (concerned company).

Benefits of the EDLI scheme

  1. If an EPF member dies during the service period, his nominee or legal heir gets the insurance amount.
  2. This insurance amount is a minimum of Rs 2.5 lakh and a maximum of Rs 7 lakh. It is based on the average salary of the employee for the last 12 months.
  3. Let us tell you that every employee associated with EPF is automatically eligible to avail the benefits of this scheme. For this, he does not need to deposit any money separately.
  4. The contribution to the EDLI scheme is made by the employer (company), which is 0.5% of the basic monthly salary of the employee.