What’s inside:
This article explains the recent changes in the Employees’ Deposit Linked Insurance (EDLI) scheme by the EPFO, ensuring better benefits for employees’ families.
The Employees’ Provident Fund Organization (EPFO) has updated the rules of the Employees’ Deposit Linked Insurance (EDLI) scheme. This change aims to provide a minimum insurance benefit of ₹50,000 to the families of employees who pass away while working.
The EDLI scheme offers life insurance coverage to employees in the organized sector. Previously, the benefits varied based on the employee’s average salary and PF balance. Now, even if an employee has not completed 12 months of service or has a low PF balance, their family will still receive at least ₹50,000.
Key changes include recognizing short breaks in service, like holidays or weekends, as continuous service. This means that if an employee has a gap of up to 60 days, it will not affect their claim. Also, if an employee dies within six months of their last PF contribution, the family will still receive benefits.
Here are some important points to remember:
– Families will get a minimum payout of ₹50,000 regardless of PF balance.
– The actual benefit can go up to ₹2.5 lakh or more based on salary and PF.
– Small service gaps will not hinder claims.
With these updates, the claim process will be easier for families. Eligible employees and their nominees can expect improved financial support in case of unfortunate events.
Summary:
- Minimum insurance benefit of ₹50,000 for families of deceased employees.
- Short service gaps now count as continuous service for claims.
- Claims valid even if the employee’s PF balance is low.
- Insurance benefits available for deaths within six months of PF contribution.
- Improved claim process for families after employee demise.
