EPFO EDLI scheme: Even if there’s no money left in your PF account, your family can still receive ₹50,000 in insurance benefits. Yes, you heard it right. The Employees’ Provident Fund Organisation (EPFO) has announced major changes to the Employees’ Deposit Linked Insurance (EDLI) scheme, bringing much-needed relief to lakhs of working families across India.
New Rule: ₹50,000 Insurance Guaranteed — No PF Balance Required
Until now, to claim EDLI insurance, it was mandatory for the employee to have at least ₹50,000 in their PF account. But that rule has now been scrapped.
According to the Ministry of Labour and Employment, even if a PF account has no balance, the nominee will still receive a minimum insurance amount of ₹50,000 in case the employee dies while in service.
This change is a huge relief, especially for families where the sole breadwinner passes away unexpectedly during employment.
60-Day Job Gap Will Not Break Service Continuity
Another big change: if an employee switches jobs and has a break of up to 60 days between two employments, it won’t be treated as a break in service.
This means that the 12 months of continuous service requirement for insurance eligibility under EDLI will remain valid — even if there’s a short gap between jobs. It’s a thoughtful update for workers in contract roles or those who frequently shift jobs.
Insurance Valid for 6 Months After Last Salary
In yet another positive step, EPFO has clarified that if an employee dies within six months of receiving their last salary, their nominee will still get the EDLI insurance benefit.
So, even if there hasn’t been a PF deduction recently, the family can still claim the insurance, as long as the death occurs within 6 months of the last salary credit.
What is the EDLI Scheme?
The Employees’ Deposit Linked Insurance (EDLI) is a life insurance scheme provided under the EPFO, meant to offer financial support to the family of a deceased employee working in the organized sector.
- No premium is paid by the employee.
- The employer contributes on the employee’s behalf.
- In case of death during service, the nominee or legal heir receives a lump-sum insurance benefit.
Under this scheme, the insurance payout can range from ₹2.5 lakh to ₹7 lakh, depending on the eligible amount.