EPFO Rule Change: Families to Get ₹50,000 Even If PF Balance Is Low - Check If You’re Eligible!
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In a major relief to families of salaried employees, the Ministry of Labour and Employment has revised the Employees’ Deposit-Linked Insurance (EDLI) Scheme under the EPFO. The new amendment ensures that a minimum insurance payout of ₹50,000 will be given to the family of a deceased EPF member, even if the provident fund balance is less than ₹50,000. This rule strengthens financial protection for workers’ families during critical times.
What Has Changed Under the New EDLI Rule ?
Under the amended EDLI Scheme 2025 , the requirement of having a minimum PF balance of ₹50,000 to qualify for insurance benefits has been removed. Now, in case of an employee’s death during service or within 12 months of employment, their family will receive a fixed assurance amount of ₹50,000 - even if the PF balance is lower than that.
Continuity of Service Condition Made Flexible
To make the insurance benefit more inclusive, EPFO has also made service continuity rules more flexible. A break of up to 60 days between two jobs will not disqualify an employee from being eligible for the benefit. Such multiple stints will now be counted as continuous service, ensuring wider coverage.
Coverage Within Six Months of Last Contribution
The scheme also covers employees who pass away within six months of their last EPF contribution, provided they were still officially on the employer’s rolls. This ensures that even those who are between jobs or on unpaid leave are not left out of the insurance benefit.
Why This Matters
Previously, families of employees who died within a year of joining had no access to the EDLI insurance payout. The new rules bridge this gap, offering timely financial help of ₹50,000 to grieving families during emergencies - regardless of how much was saved in the EPF account.
This revised EDLI scheme enhances the social safety net for employees and their dependents, making it more compassionate and inclusive. The guaranteed ₹50,000 benefit promises vital financial support when it’s needed the most.
What Has Changed Under the New EDLI Rule ?
Under the amended EDLI Scheme 2025 , the requirement of having a minimum PF balance of ₹50,000 to qualify for insurance benefits has been removed. Now, in case of an employee’s death during service or within 12 months of employment, their family will receive a fixed assurance amount of ₹50,000 - even if the PF balance is lower than that.
Continuity of Service Condition Made Flexible
To make the insurance benefit more inclusive, EPFO has also made service continuity rules more flexible. A break of up to 60 days between two jobs will not disqualify an employee from being eligible for the benefit. Such multiple stints will now be counted as continuous service, ensuring wider coverage.
Coverage Within Six Months of Last Contribution
The scheme also covers employees who pass away within six months of their last EPF contribution, provided they were still officially on the employer’s rolls. This ensures that even those who are between jobs or on unpaid leave are not left out of the insurance benefit.
Why This Matters
Previously, families of employees who died within a year of joining had no access to the EDLI insurance payout. The new rules bridge this gap, offering timely financial help of ₹50,000 to grieving families during emergencies - regardless of how much was saved in the EPF account.
This revised EDLI scheme enhances the social safety net for employees and their dependents, making it more compassionate and inclusive. The guaranteed ₹50,000 benefit promises vital financial support when it’s needed the most.
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