New EPFO rules: EPFO has made many important changes in the Employees Deposit Linked Insurance (EDLI) scheme. These amendments have been approved in the 237th meeting of the Central Board of Trustees (CBT) chaired by Union Labor Minister Mansukh Mandaviya.
New EPFO rules: If you are a job holder then this news is important for you. The Employees Provident Fund Organization (EPFO) has made many important changes in the Employees Deposit Linked Insurance (EDLI) scheme. These amendments have been approved in the 237th meeting of the Central Board of Trustees (CBT) chaired by Union Labor Minister Mansukh Mandaviya.
What are the changes
The ministry said that the CBT has approved the introduction of minimum benefit for death within one year of service. The ministry informed that in cases where an EPF member dies without completing one year of continuous service, a minimum life insurance benefit of Rs 50,000 will be given.
Benefit even without contribution
CBT has also approved benefits for members who die in service after the non-contribution period. Earlier, EDLI benefits were denied in such cases as they were considered out of service. Now if a serviceman dies within six months of receiving his last contribution, EDLI benefits will be admissible, provided the name of the member has not been removed from the rolls. This amendment is expected to benefit more than 14,000 cases of such deaths every year.
Relief even in case of job gap
CBT also approved a proposal to consider service continuity under the scheme. Earlier, EDLI benefits of minimum Rs 2.5 lakh and maximum Rs 7 lakh were denied if there was a gap of one or two days (such as weekends or holidays) between employment in two establishments, as the condition of continuous service of one year was not met.
Under the new amendments, a gap of up to two months between two employment periods will now be considered as continuous service, ensuring eligibility for EDLI benefits. This change is expected to benefit more than 1,000 cases of death during service every year. It is also estimated that these amendments will result in more than 20,000 cases of death during service every year getting higher benefits under EDLI.
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