EPFO Revises EDLI Death Benefits: What It Means For Families

The Employees' Provident Fund Organisation (EPFO) has introduced significant amendments to the Employees' Deposit Linked Insurance (EDLI) scheme, aiming to enhance financial security for the families of deceased EPF members. These updates extend coverage and ensure a more inclusive approach to death benefits.

Key Changes in EDLI Death Benefits

Coverage for Non-Contributory Period Deaths

Previously, families of EPF members who had a non-contributory period before their demise were often ineligible for EDLI benefits. The new rules remove this restriction, allowing families to claim benefits even if the deceased had a break in contributions. This reform acknowledges employment continuity and ensures families are not unfairly denied financial relief.

Employment Gaps No Longer a Disqualification

Under the earlier provisions, even a brief gap in employment—such as a weekend or a holiday—could lead to disqualification from EDLI benefits. The updated rule now considers a break of up to two months as part of continuous service. This guarantees that affected families receive the minimum assured benefit of Rs 2.5 lakh and a maximum payout of Rs 7 lakh in case of death.

Increased Coverage and Support

The EPFO estimates that more than 14,000 families annually will now qualify for EDLI benefits due to these changes. The government has positioned these reforms as part of a broader commitment to employee welfare, ensuring more families receive the financial support they need during difficult times.

Additional Update: Higher Interest Rate for EPF Savings

In a separate decision, the Central Board of Trustees (CBT) has approved an 8.25 per cent annual interest rate on Employees’ Provident Fund (EPF) savings for the financial year 2024-25. This move is expected to benefit millions of EPF account holders by providing better returns on their retirement savings.

The latest changes to the EDLI scheme are a welcome relief for employees and their families, providing broader coverage and financial security in times of crisis. By addressing past limitations and offering increased benefits, the EPFO reinforces its role in safeguarding the interests of Indian workers and their dependents.