EPFO Announces New EDLI Rules: Increased Death Benefits for EPF Members’ Families

The Employees’ Provident Fund Organisation (EPFO) has announced key changes to the Employees’ Deposit Linked Insurance (EDLI) Scheme, aimed at improving financial security for families of EPF members. These updates were introduced during the 237th meeting of the Central Board of Trustees (CBT) on February 28, 2025.

Key Changes in EDLI Scheme

1. Minimum EDLI Benefit for Death Within 1 Year of Service

Previously, families of EPF members who passed away within a year of service were not eligible for an insurance payout. Under the new rule, a minimum life insurance benefit of ₹50,000 will be granted to families if an EPF member dies within 1 year of joining.

This amendment is expected to benefit over 5,000 cases annually by extending financial relief to affected families.

2. EDLI Death Benefit Extended to Non-Contributory Period

Earlier, if an EPF member died after a non-contributory period, the family was denied the EDLI benefit.

The revised rule ensures that families of members who pass away within 6 months of their last EPF contribution—provided their name has not been removed from the employer’s rolls—will now receive the death benefit.

This change is anticipated to provide financial support to over 14,000 families each year.

3. Consideration of Employment Gaps in Service Continuity

Previously, short employment gaps—such as weekends or brief breaks between jobs—led to the denial of EDLI benefits. Under the new rule, a gap of up to 2 months between jobs will still be considered continuous service, ensuring that families receive the minimum EDLI benefit of ₹2.5 lakh and the maximum benefit of ₹7 lakh.

This adjustment is expected to assist more than 1,000 families annually.

Strengthening Social Security for EPF Members

These amendments reinforce the government’s commitment to enhancing social security and employee welfare by addressing crucial gaps in the existing framework.

The revised EDLI scheme ensures that families of EPF members receive the financial support they need during difficult times.

About the EDLI Scheme

The Employees’ Deposit Linked Insurance (EDLI) Scheme was introduced by the Government of India in 1976 to provide life insurance coverage to EPF members.

Under the scheme, family members of a deceased EPF member can receive a death benefit of up to ₹7 lakh if the member dies while in service.

EPF Interest Rate for FY 2024-25

In addition to the EDLI scheme updates, the EPFO announced an interest rate of 8.25% on EPF accumulations for the fiscal year 2024-25. The Government of India will officially notify this rate, after which EPFO will credit the interest to members’ accounts.

Conclusion

The latest updates to the EDLI scheme significantly enhance financial security for families of EPF members. By introducing a minimum insurance benefit, extending coverage to non-contributory periods, and considering short employment gaps, the EPFO has taken major steps to support families in distress.

These reforms reflect a broader commitment to social security, ensuring that beneficiaries receive timely and adequate financial assistance.

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