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In a major reform to benefit millions of employees and their families, the Ministry of Labour and Employment has relaxed the rules of the Employees’ Deposit Linked Insurance (EDLI) Scheme under the Employees' Provident Fund Organisation (EPFO). According to the new changes, in the unfortunate event of an employee's death during service, the nominee will now be entitled to a minimum insurance payout of ₹50,000, regardless of the balance in the PF account.

✅ Key Highlights of the New EDLI Rules 🔸 Minimum ₹50,000 Insurance Guarantee

Previously, to avail of the insurance benefit under EDLI, there had to be at least ₹50,000 in the PF account. However, under the revised guidelines, even if the employee’s PF balance is below ₹50,000, the nominee will still receive the minimum assured insurance of ₹50,000 in the event of the employee's death during employment.

🔸 60-Day Employment Gap Will Not Be Considered a Service Break

A significant and employee-friendly change is that a job gap of up to 60 days between two jobs will no longer be treated as a break in service.
This means:

• If an employee worked in two or more organizations with a gap of less than 60 days, their total service will be treated as continuous.

• This change will ensure uninterrupted insurance coverage and help more employees qualify for the EDLI benefit.

🔸 Insurance Valid for 6 Months After Last Salary

Another critical update is that if an employee dies within 6 months of receiving their last salary, their nominee will still be eligible for the insurance benefit.
This clause is especially useful for those who may have temporarily left a job or are between roles.

🛡 What Is the EDLI Scheme?

The Employees’ Deposit Linked Insurance Scheme (EDLI) is a life insurance cover provided to employees under the EPFO. The key features of this scheme are:

• Insurance Coverage Range: ₹2.5 lakh to ₹7 lakh

• No Contribution Required from Employee: The premium is paid by the employer as part of the EPF contributions.

• Beneficiary: In case of the employee’s death during active service, the legal nominee or heir receives a lump sum insurance payout.

✅ Who Benefits from These Changes?

These updates are expected to:

• Ease eligibility criteria for insurance benefits.

• Support families of employees who died while in service but had insufficient PF balances.

• Recognize the growing trend of job switches with short breaks, making the insurance more accessible.

📌 Summary of New EDLI Provisions (Effective July 2025) Feature Old Rule New Rule

Minimum PF balance for claim	₹50,000 required	Not required
Insurance coverage	₹2.5 – ₹7 lakh	Unchanged
Service break treatment	Even short breaks disqualified	Up to 60-day gap not considered a break
Eligibility after job end	Death must occur while on job	Death within 6 months after last PF salary deduction is covered

🔍 Additional Information

Employees who are EPFO members automatically qualify for this scheme. To claim the benefit, the nominee needs to submit:

• Death certificate

• Proof of nomination (Form 2 or EPF records)

• Employment details

No separate enrollment or contribution is needed from the employee.

Final Thoughts

The revised EDLI guidelines are a progressive step toward employee welfare. In times of personal loss, these provisions can offer crucial financial support to families. With simplified rules and broader eligibility, the government aims to enhance social security for the formal workforce across India.

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