EPFO New Rules 2025: Free Insurance Cover Up To ₹7 Lakh For PF Account Holders Under EDLI Scheme
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The Employees’ Provident Fund Organisation (EPFO) has introduced key updates to the Employee Deposit Linked Insurance (EDLI) scheme in 2025. These reforms aim to provide stronger financial protection to salaried workers and their families, making the benefits more accessible and inclusive.
What is the EDLI Scheme?
Launched in 1976, the EDLI scheme offers life insurance to employees enrolled under the EPF (Employees’ Provident Fund). If a covered employee passes away during their service period, their nominee or legal heir receives a lump-sum insurance payout.
The best part? Employees do not pay any premium. The employer contributes 0.5% of the employee’s basic salary towards the EDLI scheme, making it a free insurance cover for the worker.
What’s New in EDLI Rules 2025?
EPFO has made the scheme more beneficial with these important updates:
1. Insurance Cover Raised to ₹7 Lakh
The maximum payout under EDLI has been increased from ₹2.5 lakh to ₹7 lakh. The final amount is calculated based on the employee’s average basic salary over the past 12 months.
2. Minimum ₹50,000 Cover for New Joinees
Previously, no insurance was paid if an employee died within a year of joining. Under the new rules, a minimum insurance cover of ₹50,000 will be given—even if the death occurs within the first year of employment.
3. Continuous Cover During Job Transitions
The updated scheme allows coverage to continue even if the employee switches jobs, provided the gap between jobs does not exceed two months. This ensures families remain protected during employment transitions.
How to Claim EDLI Insurance ?
In case of an employee’s death while in service:
Who Stands to Benefit?
According to EPFO estimates, over 1,000 workplace-related deaths occur annually. These new rules will ensure families of the deceased receive timely and sufficient financial aid, especially during their most vulnerable moments.
Why This Update Matters
This move reflects the EPFO’s commitment to expanding the social safety net beyond retirement savings. With zero premium, higher payouts, and seamless coverage, EDLI now stands as one of the most valuable no-cost insurance schemes for salaried individuals in India.
EPFO’s updated EDLI scheme in 2025 offers comprehensive, cost-free insurance benefits to EPF members. With improved claim processes, increased cover, and uninterrupted protection—even during job changes—millions of workers and their families now have a more robust financial safety net.
Don’t forget to keep your nominee details updated to make the most of this benefit.
What is the EDLI Scheme?
Launched in 1976, the EDLI scheme offers life insurance to employees enrolled under the EPF (Employees’ Provident Fund). If a covered employee passes away during their service period, their nominee or legal heir receives a lump-sum insurance payout.
The best part? Employees do not pay any premium. The employer contributes 0.5% of the employee’s basic salary towards the EDLI scheme, making it a free insurance cover for the worker.
What’s New in EDLI Rules 2025?
EPFO has made the scheme more beneficial with these important updates:
1. Insurance Cover Raised to ₹7 Lakh
The maximum payout under EDLI has been increased from ₹2.5 lakh to ₹7 lakh. The final amount is calculated based on the employee’s average basic salary over the past 12 months.
2. Minimum ₹50,000 Cover for New Joinees
Previously, no insurance was paid if an employee died within a year of joining. Under the new rules, a minimum insurance cover of ₹50,000 will be given—even if the death occurs within the first year of employment.
3. Continuous Cover During Job Transitions
The updated scheme allows coverage to continue even if the employee switches jobs, provided the gap between jobs does not exceed two months. This ensures families remain protected during employment transitions.
How to Claim EDLI Insurance ?
In case of an employee’s death while in service:
- The nominee or legal heir can file a claim through the EPFO regional office.
- No premium is required from the employee.
- The insurance payout ranges from ₹2.5 lakh to ₹7 lakh, based on salary data.
- Employers usually assist in the claim submission process.
Who Stands to Benefit?
According to EPFO estimates, over 1,000 workplace-related deaths occur annually. These new rules will ensure families of the deceased receive timely and sufficient financial aid, especially during their most vulnerable moments.
Why This Update Matters
This move reflects the EPFO’s commitment to expanding the social safety net beyond retirement savings. With zero premium, higher payouts, and seamless coverage, EDLI now stands as one of the most valuable no-cost insurance schemes for salaried individuals in India.
EPFO’s updated EDLI scheme in 2025 offers comprehensive, cost-free insurance benefits to EPF members. With improved claim processes, increased cover, and uninterrupted protection—even during job changes—millions of workers and their families now have a more robust financial safety net.
Don’t forget to keep your nominee details updated to make the most of this benefit.
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