• By Shreyansh Mangla
  • Fri, 25 Jul 2025 03:27 PM (IST)
  • Source:JND
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EPFO EDLI Scheme: The Employees’ Provident Fund Organisation (EPFO) is set to introduce important changes in the EDLI (Employee Deposit Linked Insurance) scheme. Under these changes, the earlier conditions attached to the scheme will be removed. This move (EPFO Benefits 2025) will directly benefit millions of employees and their families. If an employee covered under the EPFO EDLI Schem unfortunately dies on the job, their family (or any nominee) will get a lump sum insurance amount. The good thing is, employees don't have to pay anything for this insurance; their employer contributes to it What Is The EPFO EDLI Scheme?

EDLI (Employee Deposit Linked Insurance) is an important scheme under EPFO. It provides life insurance benefits to the nominee of an employee in case of death during employment. The nominee or family members of the employee receive a lump sum insurance amount. The employee is not required to make any additional contributions toward this scheme. Under EDLI, the employee is eligible for a life insurance coverage ranging from Rs 2.5 lakh to Rs 7 lakh.

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EPFO EDLI Scheme: What Ministry of Labour and Employment Said?

EDLI Benefit Without Balance: The Union Ministry of Labour and Employment has relaxed the rules under the EDLI scheme. It has stated that if an employee dies during the course of employment, their family will receive an insurance amount of Rs 50,000, even if there is no money in the employee’s EPF account.

EPFO EDLI Scheme: Families To Get Benefit Too

As per the new rules, if an employee dies while on duty, their nominee will be entitled to a compensation of Rs 50,000. Until now, the rule required that the employee must have at least Rs 50,000 in their EPF account to claim the insurance benefit. The Ministry further clarified that if any EPFO member dies within six months of their last salary deduction, the nominee will still be eligible to claim the insurance benefits under the scheme.

EPFO EDLI Scheme: 60-Day Job Gap No Longer Considered a Break

One major and significant change in the scheme is that a gap of up to 60 days between two jobs will no longer be considered a break in service. In simpler terms, if you’ve worked multiple jobs and had a gap of up to 60 days (i.e., two months) between any two jobs, it will still be treated as continuous service. This means the employee will be eligible for full insurance coverage under the EDLI scheme.

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EPFO EDLI Scheme: What's New?

The government has made the EDLI scheme even better for families and nominees:

1. Guaranteed Rs 50,000 Payout: Even if an employee's main retirement savings account has no money in it, their families are guaranteed to get Rs 50,000 as an insurance payout. A previously criticised rule, which required a minimum balance in the account to receive this Rs 50,000, has now been removed.

2. Covers Recent Deaths: If an employee passes away within six months of their last pay, their families can still claim the insurance money.

3. No Break for Short Gaps Between Jobs: Even if you take a short break between your jobs, say a month or two, it will not be considered a break in your service.

4. This means your work history will be seen as a continuous journey, making it easier for you to get the insurance benefits.