If you’re working in the private sector and contributing to EPF, here’s something important your family should know — and it could mean a world of support in a tragic time.
The Employees’ Provident Fund Organisation (EPFO) has made crucial changes to the Employees’ Deposit Linked Insurance (EDLI) Scheme that can help families of employees after death — whether there’s money in the PF account or not.
Now, Minimum ₹50000 Insurance Is Guaranteed
According to the Ministry of Labour and Employment, if an employee passes away while in service, their nominee will receive a minimum insurance payout of ₹50,000 — regardless of the balance in the PF account.
This is a major relief for families who might be financially dependent on the employee, especially in low-income jobs where PF balances are small.
60-Day Job Gap? No Problem
Earlier, if an employee changed jobs and had even a small gap, their service was treated as broken — and insurance benefits could be denied.
But under the new rules, a gap of up to 60 days between two jobs will not be considered a break in service. That means even if you’ve worked in two or three companies with brief gaps in between, you’ll still be eligible for the full EDLI benefit — as long as the total service is 12 months or more.
Death Within 6 Months of Last PF Deduction? Still Covered
In another positive update, if an employee dies within six months of receiving their last salary (and PF was deducted from it), the nominee is still eligible for the insurance benefit.
This change is especially helpful for workers who may have recently switched jobs, been laid off, or left due to health issues, but still remained eligible under the EPFO scheme.
What Is the EPFO EDLI Scheme?
The Employees’ Deposit Linked Insurance (EDLI) is a life insurance scheme provided to EPFO members. It offers financial protection to the nominee in case the employee dies while still employed.
Available to employees of the organized sector whose employer contributes to EPFO.
No need to pay extra — it’s covered under your EPF contributions.
Provides insurance from ₹2.5 lakh up to ₹7 lakh, based on your salary and service length.