EPFO makes changes to its rules, so many employees will benefit with huge money

Great news for Employees’ Provident Fund Organization account holders! EPFO has updated the Employee Deposit Linked Insurance Scheme, making it simpler to file death claims and boosting coverage and insurance payouts. This change is set to benefit thousands of families each year.

Previously, if an EPF member passed away within their first year of service, their family wouldn’t receive the EDLI death benefit. Now, if an EPF member dies within that first year, their family will receive a minimum insurance benefit of Rs 50,000. This amendment is expected to help over 5,000 families dealing with such unfortunate events annually.

So, what’s the EDLI scheme and how can you benefit from it?

1. The Government of India launched the EDLI scheme back in 1976 to ensure financial support for employees’ families in case of unexpected death. It offers life insurance to those registered under EPF.

2. This scheme specifically covers EPF account holders who pass away within a year of starting their job. Employees who switch jobs will also continue to have insurance coverage.

3. With the new EPFO rules, the EDLI benefit will now extend to EPF members who have recently joined and die within their first year of service, ensuring their families receive at least Rs 50,000 in life insurance payout.

You can take advantage of the 7 lakh benefit in this scheme

1. With the recent changes to the EDLI scheme, employees are now eligible for insurance coverage ranging from Rs 2.5 lakh to Rs 7 lakh.

2. To put it simply, the insurance amount under EDLI is calculated as 35 times the monthly salary earned over the past year. So, if someone earns Rs 15,000 a month, that would total Rs 5 lakh 25 thousand. Plus, there’s an additional bonus of Rs 1,75,000, bringing the total coverage to Rs 7 lakh.

3. Previously, if an EPF member had a break of 1-2 days while switching jobs, it was seen as a service break, and their family wouldn’t receive any benefits. Now, even if there’s a gap of up to two months between jobs, it will count as continuous service. This change will positively impact over 1,000 families each year.