By- Anurag Tiwari
Significant revisions to the EDLI plan are announced by EPFO. The introduction of a minimum life insurance benefit for newly enrolled EPF members who die within a year of joining is one of the major improvements.
EPFO Revises EDLI Scheme Rules: Key Changes in Death Benefit Provisions
In an effort to improve the financial security of the families of departed EPF members, the Employees’ Provident Fund Organization (EPFO) has announced significant changes to the Employees’ Deposit Linked Insurance (EDLI) program. By increasing insurance payouts and expanding coverage, these reforms, which were revealed at a meeting on February 28, 2025, are anticipated to benefit thousands of families each year. According to EPFO, “The modification is estimated to result in benefits for more than 14,000 cases of such death cases every year.”
The Employees’ Provident Fund (EPF) includes the Employee Deposit Linked Insurance (EDLI) Scheme, which serves as a vital social security measure. This scheme ensures financial protection for the dependents of EPF members in case of their untimely demise during employment.
A significant update in the EDLI scheme is the introduction of a minimum life insurance benefit for recently joined EPF members who pass away within their first year of service. Under the revised rules, the dependents of such members will receive a minimum insurance payout of ₹50,000.
The Employees’ Provident Fund Organisation (EPFO) stated:
“A minimum life insurance benefit of ₹50,000 will be provided for cases where an EPF member dies without completing one year of continuous service. This amendment is expected to result in higher benefits for more than 5,000 in-service death cases annually.”
These changes aim to enhance financial security for families of EPF members, ensuring broader coverage and greater support in unfortunate circumstances.
The EPFO’s latest revision in the EDLI death benefit now recognizes service continuity even during short employment gaps. Under the new rule, a break of up to two months between two periods of employment will still be considered continuous service, ensuring that EPF members’ families remain eligible for enhanced EDLI benefits.
The EPFO stated:
“The updated EDLI program strengthens the government’s commitment to improving social security and employee welfare by addressing critical gaps and extending coverage to previously ineligible cases. This ensures that the families of deceased EPF members receive the financial support they need.”
In addition to these social security improvements, the Central Board of Trustees (CBT) has declared an annual interest rate of 8.25% on EPF savings for the fiscal year 2024-25. The official interest rate notification will be issued by the Government of India, after which the EPFO will credit the interest to subscribers’ accounts.
These updates reinforce EPFO’s commitment to providing greater financial security and benefit coverage to employees and their families.
