Synopsis: The Ministry of Labour has amended the EDLI Scheme, ensuring a minimum assurance benefit of ?50,000 to the family of a deceased PF holder, even if the average fund balance is below ?50,000. The move widens eligibility by relaxing service continuity norms and offers better social security.
In a significant move aimed at strengthening social security for salaried employees and their dependents, the Ministry of Labour and Employment has notified a key amendment to the Employees’ Deposit-Linked Insurance (EDLI) Scheme, 2025.
As per the new rule, even if the average provident fund balance of a deceased employee is less than ?50,000, their family will still receive a minimum payout of ?50,000. This financial support will be extended under the revised EDLI scheme managed by the Employees' Provident Fund Organisation (EPFO).
What’s New in the EDLI Scheme?
The amendment makes the payout criteria more inclusive. Here’s what has changed:
- If an EPF member dies during the preceding twelve months or within their membership period, and their average PF balance is below ?50,000, a minimum of ?50,000 will still be paid to their family.
- If there is a gap of up to 60 days between two employment spells, the service will still be considered continuous for benefit calculation.
- Even if a worker dies within 6 months of the last EPF contribution, the family remains eligible for the insurance benefit, provided the individual was still on the employer’s rolls.
This revision overrides earlier restrictions where families of employees who died within a year of joining were not eligible for benefits.
Why It Matters:
This scheme acts as a crucial financial cushion for families dealing with the sudden demise of a wage earner. By lowering the entry barrier and acknowledging employment gaps, EPFO aims to expand coverage and ensure dignity for dependents in their time of grief.
Disclaimer: The information provided in this article is based on official notifications by EPFO and the Ministry of Labour. Readers are advised to consult the official EPFO website or legal advisors for detailed eligibility criteria and claim procedures.
