In its 237th meeting of the Central Board of Trustees announced important changes to the Employees Deposit Linked Insurance scheme. These changes are done to provide strengthened financial support for the families of employees who pass away while in service. Scroll down to learn more about the benefits.
What Is The EDLI Scheme?
The EDLI scheme is a part of the Employees Provident Fund that acts as a social security benefit. This scheme offers financial assistance to the dependents of an EPF member in case of an untimely death of the EPF member while still employed.
3 Key Changes In The EDLI Scheme
Here are the three key changes you should know about:
Minimum Insurance Benefit
As per the announcement, if an employee dies within their first year of service, their family will receive a minimum insurance amount of Rs 50,000.
The press statement from EPFO read, “A minimum life insurance benefit of Rs. 50,000 will be provided in cases where an EPF member dies without completing one year of continuous service. This amendment is expected to result in higher benefits for more than 5,000 cases of deaths in service, every year.”
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Benefits Even After A Non-Contributory Period
Previously, if an EPF member had a non-contributory period before passing away, their family could be denied benefits. However, under the new rules, the benefits will be given to these cases as well. EPFO said, “Now, if a member passes away within six months of their last contribution received, the EDLI benefit will be admissible, provided the member’s name is not stuck off from rolls.”
Consideration Of Service Continuity
Earlier, short employment gaps like a weekend or a holiday during a job switch could make families denied the death benefits. As per previous riles, families were denied the minimum benefit of Rs 2.5 lakh and the maximum of Rs 7 lakh because the continuous one-year service requirement was not met. However, now under new rules, EPFO said, “Under the new modifications, a gap of up to two months between two spells of employment will now be considered as continuous service, ensuring eligibility for higher quantum EDLI benefits. This change is expected to benefit more than 1,000 cases of deaths in service, every year.”
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