.jpg)
Synopsis: The government has increased the insurance benefits for members of the Employees' Provident Fund Organisation (EPFO) under the Employees' Deposit Linked Insurance (EDLI) scheme. The maximum life insurance cover is now Rs 7 lakh, effective retroactively from April 28, 2024. This update enhances financial security for EPFO members’ families, supporting them in case of the member's demise. The scheme has been adjusted over the years to increase benefits and improve accessibility, including easing service requirements to help those who have changed jobs.
The Employees' Provident Fund Organisation (EPFO) has announced an enhancement of the life insurance benefits available to its members under the Employees' Deposit Linked Insurance (EDLI) scheme. Effective retroactively from April 28, 2024, the scheme now offers a maximum insurance cover of Rs 7 lakh, providing greater financial security to the families of EPFO members.
The EDLI scheme, established in 1976, serves as a crucial safety net, ensuring that the families of EPFO members receive financial assistance in case of the member’s untimely demise. The recent enhancement reflects the government's commitment to strengthening social security measures, particularly for families reliant on a single income.
Background and Updates to the Scheme Initially, in 2018, the scheme had a minimum insurance cover of Rs 1.5 lakh, with a cap of Rs 6 lakh. However, in April 2021, the government raised the minimum benefit to Rs 2.5 lakh and the maximum to Rs 7 lakh for a period of three years. To further assist members, the requirement for 12 months of continuous service in a single establishment was relaxed, benefiting employees who had changed jobs during that period.
Key Features of the Revised Scheme
Life Insurance Cover: The insurance cover is calculated as 35 times the average monthly salary (basic plus dearness allowance) over the past 12 months, up to a maximum of Rs 7 lakh. Additionally, a bonus of Rs 1.75 lakh is included, enhancing the overall coverage.
.
No Premium: Members do not need to pay any additional premium to receive this insurance benefit, which is automatically provided to all EPFO subscribers.
Accessibility: The updated scheme includes relaxed eligibility criteria to ensure that members who switch jobs are still covered, a significant step towards inclusivity in social security.
Importance of the Update Union Labour Minister Mansukh Mandaviya highlighted the benefits of this initiative, stating that over 6 crore EPFO members are now eligible for enhanced coverage. The change aims to ensure that families of members have access to financial resources during difficult times, helping alleviate financial strain and promoting peace of mind.
Conclusion The revised EDLI scheme demonstrates the government's proactive approach to improving the social security landscape in India. With the increased insurance cover, EPFO members can be assured that their families are financially supported, reinforcing the importance of robust social safety nets for working professionals across the country.
