EPFO EDLI Scheme: These decisions taken in the 237th meeting of EPFO will benefit lakhs of families every year. These steps have been taken especially to simplify the death claim process and provide more security.
EPFO EDLI Scheme: EPFO Employees’ Provident Fund Organization (EPFO) has made 3 major changes in the Employees’ Deposit Linked Insurance (EDLI) Scheme. These changes are a relief for those families who used to face financial insecurity in the event of sudden death of an EPF member. These decisions taken in the 237th meeting of EPFO will benefit lakhs of families every year. These steps have been taken especially to simplify the death claim process and provide more security. Let us know what the new changes are and how you will benefit from it.
1. EDLI benefit will be available even before one year of service
Earlier, if an EPF member died during the job before one year, then the family did not get EDLI death benefit. Now this rule has been changed.
- New rule: If an EPF member dies in a service period of less than one year, even then his family will get a minimum insurance benefit of ₹50,000.
- Benefit: More than 5,000 families will benefit from this every year.
2. Benefit will be available even after the non-contributory period
Earlier, if an EPF member did not contribute to EPF for some time and then died, the family did not get EDLI benefit. Now this has been changed.
- New rule: If the EPF member dies within six months from the date of last contribution and his name has not been removed from the company’s roll, then the family will get EDLI death benefit.
- Benefit: About 14,000 families will benefit from this change every year.
3. You will also get benefit in service gap on changing job
Earlier, if an EPF member took a gap of 1-2 days while changing jobs, it was considered a break in the service period. Due to this, the family did not get Minimum EDLI benefit (₹ 2.5 lakh) and Maximum death benefit (₹ 7 lakh).
- New rule: Now even if there is a gap of up to two months between two jobs, it will be considered continuous service.
- Benefit: Every year more than 1,000 families will get direct benefit from this.
What is EDLI scheme? (Employees’ Deposit Linked Insurance Scheme)
EPFO’s EDLI scheme was started in 1976 and it provides life insurance coverage to EPF members. If an employee dies during the job, his family gets a benefit of up to ₹ 7 lakh.
EPF Interest Rate 2024-25: How much interest will be available?
EPFO interest rate for FY 2024-25 has also been announced. This year, 8.25% interest will be available on EPF accounts. This rate will be officially implemented after the notification of the government.
How will the family get full benefit?
- Always keep your EPF nominee details updated.
- Get the EPF account transferred while changing jobs so that continuous service is maintained.
- Keep an eye on any changes related to EPFO.
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