EDLI Scheme: The government has made many important changes in the EDLI scheme, know how EPF members will benefit..

EDLI Scheme: The Employees' Provident Fund Organization (EPFO) has announced important changes in the Employees' Deposit Linked Insurance (EDLI Scheme) scheme. The Central Board of Trustees (CBT), chaired by Union Labor Minister Mansukh Mandaviya, approved these amendments in its 237th meeting. Apart from this, the board recommended an interest rate of 8.25% on Employees' Provident Fund (EPF) deposits for the financial year 2024-25. After the interest rate is officially notified by the central government, the EPFO ​​will deposit the interest rate in the accounts of the subscribers.

Many important changes made in the EDLI scheme

After the actuarial evaluation of the Employees' Deposit Linked Insurance Scheme (EDLI Scheme), the board has approved major amendments to the scheme to provide more financial security and support to the family of the members.

1. Introduction of minimum benefit on death within one year of service

A minimum life insurance benefit of Rs 50,000 will be provided if an EPF member dies without completing one year of continuous service. This amendment is expected to provide more benefits in more than 5,000 cases of in-service deaths every year.

2. Benefit for members who died while in service after the non-contribution period

Earlier, EDLI benefit was denied in such cases as these were treated as deaths outside service. Now, EDLI benefit will be admissible if a member dies within six months of receiving his last contribution, provided the member's name has not been removed from the rolls. This amendment is expected to provide benefits in more than fourteen thousand cases of such deaths every year.

3. Service Continuity Consideration

Earlier, a gap of one or two days (such as weekends or holidays) between employment in two establishments resulted in the denial of EDLI benefits of a minimum of Rs 2.5 lakh and a maximum of Rs 7 lakh, as the condition of continuous service of one year was not met. Under the new amendments, a gap of up to two months between two spells of employment will now be considered as continuous service. This will ensure eligibility for higher amounts of EDLI benefits. This change is expected to benefit more than one thousand cases of death in service every year.

These amendments are expected to result in higher benefits under EDLI in more than 20 thousand cases of death in service every year. These reforms are aimed at enhancing social security benefits for the families of EPF members, ensuring better financial security and mitigating hardships of distressed families.

The government's big decision on EPF interest rates

EPFO has retained the interest rate of 8.25% on Employees' Provident Fund (EPF) deposits for 2024-25. The Employees' Provident Fund Organization (EPFO) in February 2024 marginally increased the interest rate on EPF from 8.15% in 2022-23 to 8.25% in 2023-24. The 8.5% interest rate on EPF deposits for the financial year 2020-21 was decided by the CBT in March 2021. After the decision of the CBT, the interest rate on EPF deposits for 2024-25 will be sent to the Finance Ministry for approval.

Many changes in the EDLI scheme

Provision of ₹ 50 thousand in case of death of the account holder within 1 year.

Earlier there was no facility in case of not completing 6 months, now there will be. Provided his name is on the roll.

If there is a gap of a few days between jobs, it will be considered an uninterrupted job.
There was also a discussion on reviewing the increase in the minimum pension amount.

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