- EPFO has removed earlier rules to access Employee Deposit Linked Insurance Scheme benefits, helping low-paid and unorganized sector workers.
- Gaps between jobs of up to 6 days are ignored, and breaks under 60 days allow continuous insurance coverage for workers with multiple jobs.
- Insurance benefits will be given to families if the worker dies during the last 6 months of PF contributions without any extra premium payments.
EPFO has recently changed the rules of the Employee Deposit Linked Insurance Scheme to make insurance benefits easier to get for workers and their families. If you work in the organized or unorganized sector, these relaxed rules make sure you or your family get insurance cover without extra conditions, giving you better financial security.
Key Changes in the EPFO’s Employee Deposit Linked Insurance Scheme
The new changes in the Employee Deposit Linked Insurance Scheme (EDLI) remove many earlier obstacles, expanding insurance coverage to more workers. This especially helps those in low-paying jobs or informal work who previously couldn’t meet the conditions to claim insurance benefits.
Insurance Benefits Now Available Without Earlier Conditions
Earlier, to claim insurance under the EDLI scheme, a worker needed a minimum Provident Fund (PF) balance of Rs 50,000. This rule has now been removed. No matter your PF balance, if a worker passes away, their family will get an insurance benefit of at least Rs 50,000. This important change allows low-income workers and those from the informal sector to get life insurance benefits which they couldn’t before.
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Simple Explanation of the Gap Rule and Job Changes Impact
The updated rules also cover job changes, a big issue for many workers. Now, any gap of up to 6 days between two jobs won’t count as a break. Also, if you changed jobs several times but have breaks of less than 60 days, your working periods will be treated as continuous for insurance. This means you won’t lose insurance benefits just because of short breaks or multiple jobs, making coverage more stable for today’s changing workforce.
Financial Support for Families After a Worker’s Death
Your family’s financial safety is the main focus of these changes. If a worker dies during the last six months of active PF contribution, their family will get the EDLI insurance amount. This applies even if the worker was still employed and paying into their PF. Most importantly, no extra insurance premium will be needed from the worker or their family to get this payout, ensuring quick support when it’s needed most.