- Minimum EDLI life cover of Rs 50,000 guaranteed for all EPFO subscribers’ families under updated rules.
- Employment gap of up to 60 days no longer breaks continuous service for EDLI eligibility.
- Employees dying within six months of last contribution also eligible for EDLI benefits.
Employees’ Deposit Linked Insurance (EDLI) scheme under the Employees’ Provident Fund Organisation (EPFO) has recently been updated. The Central Government has relaxed eligibility rules for EDLI, promising a minimum life cover of Rs 50,000 to the families of every subscriber. These changes focus on providing better financial security for workers, especially those who often change jobs or earn low wages.
What the EDLI Scheme Under EPFO Is About
The EDLI scheme provides life insurance coverage to all EPF subscribers. If an employee covered under this scheme passes away while employed, their family receives a death benefit that ranges from a minimum guaranteed amount to a maximum of Rs 7 lakh. This support helps families financially during tough times and comes without any deductions from employee salaries since the contributions are made by employers alone.
Recent Updates to EDLI Eligibility and Benefits
On July 18, 2025, the Ministry of Labour and Employment announced important updates to make the scheme more inclusive and fair. The main changes set a minimum payout of Rs 50,000 no matter the subscriber’s provident fund balance. Other updates simplify how continuous employment periods are counted and clearly state eligibility for employees who die soon after their last salary contribution.
Minimum Assurance Benefit of Rs 50,000: What It Means for You
According to the new rule, if a subscriber dies while working or while still a member of EPFO, their family will get at least Rs 50,000. This is an improvement over the old system where payouts depended only on average provident fund balances, which sometimes gave lower benefits. This guaranteed minimum gives all EPF members better protection and peace of mind.
Simplified Rules for Continuous Service and Employment Gaps
Before, workers needed 12 months of continuous service for eligibility, but a break of up to 60 days between jobs could reset this count and disqualify many who switch jobs often. Now, these short breaks are not counted against you, so multiple jobs can be added together as continuous service. This helps workers who frequently change jobs keep their EDLI benefits.
Who Is Eligible if They Die Within Six Months of Last Contribution
The new rules clearly say that employees who pass away within six months after their last EPF contribution but are still on the employer’s payroll qualify for EDLI benefits. This means workers actively employed but who face sudden death will have their families protected.
How These EDLI Changes Help Low-Income and Job-Hopping Workers
Workers with low income often change jobs a lot, which caused problems with the earlier EDLI rules. Removing the 60-day gap rule and setting a guaranteed minimum benefit directly help these workers by providing stronger financial support.
Who Pays for the EDLI Scheme? The Employer’s Role
It’s good to remember that only the employer funds the EDLI scheme. Unlike the EPF where both employer and employee contribute, this life cover comes to you without any cuts from your salary.
How to Check Your EDLI Coverage and Claim Benefits
You can check your EDLI coverage by logging into the official EPFO member portal at epfindia.gov.in. If a claim needs to be made, the family should contact the employer or the EPFO office with the needed documents to start the process. Keeping your employment and KYC details updated with EPFO makes claims easier and faster.
These updates in the Employees’ Deposit Linked Insurance scheme improve social security, helping you and your family get better protection when unexpected events happen. Stay updated and regularly check your EPF account to understand and use your EDLI benefits fully.