Employees’ Deposit Linked Insurance (EDLI) scheme was started in 1976. Under this scheme, the family members of a private employee get financial assistance on his death. Last month, EPFO had announced some changes in the EDLI scheme
If you do a private job and come under EPFO, then you will also get the benefit of Employees Deposit Linked Insurance (EDLI). Actually, every member of EPFO comes under the purview of this scheme. EDLI scheme was started in 1976. In this scheme, the family members of a person doing a private job get financial assistance on his death. Although this scheme is very old, but most of the people doing private jobs are not aware of this scheme.
How much financial assistance is available on death now?
In the Employees’ Deposit Linked Insurance (EDLI) scheme, on the death of an EPFO member, his family member gets financial assistance of minimum Rs 2.5 to maximum Rs 7 lakh. Before 2021, the financial assistance was between Rs 1.5 lakh to Rs 6 lakh. It was increased in 2021. The duration of this scheme was extended for three years, which was ending on April 27, 2024. But, the government had decided to extend this benefit till further orders. This means that this scheme will continue indefinitely and there is no need for the government to issue any notification in this matter.
What changes has EPFO made in the scheme last month?
Last month, EPFO had announced some changes in the EDLI scheme. In the meeting of the Central Board of Trustees (CBT) of EPFO led by Union Labor Minister Mansukh Mandaviya, the proposal to change the rules of this scheme was approved. It was said that if the employee dies in the first year of starting the job, then he will get financial assistance of at least Rs 50,000 under the EDLI scheme. EPFO had said that this change in the rule will benefit more than 5,000 families.
What will be the benefits of the change in rules?
According to the new rules of EDLI scheme, if the employee dies within six months of the first contribution to EPF, then his family will be entitled to the benefit of EDLI. The condition is that his name should not have been removed from the payroll. It was estimated that thousands of families would benefit from this change in the rules, because about 14,000 such cases come every year. Earlier, employees did not get the benefit of EDLI scheme if there was even a small gap (in terms of time) between two jobs. According to the new rules, a gap of up to two months in the job will be considered continuous service.
