EPFO: Three major changes have been made in the EDLI scheme. First, the limit of insurance cover has been increased to Rs 7 lakh. This amount will be decided on the basis of the employee’s average salary of the last 12 months.
EPFO : The Employees Provident Fund Organization (EPFO) has made major changes in the Employee Deposit Linked Insurance (EDLI) scheme in 2025. The purpose of these changes is to provide better financial security to the employees and their families. The biggest thing is that employees will not have to pay any premium for this insurance, that is, it is completely free.
How does EDLI scheme work?
EDLI scheme was started in 1976. This scheme provides insurance protection to the employees associated with EPF in case of death during service. The employee does not have to pay any amount for this scheme, while the employer contributes 0.5% of the basic salary of the employee to this scheme. Earlier, the maximum insurance cover under this scheme was Rs 2.5 lakh, which has now been increased to Rs 7 lakh.
How much insurance is available under EDLI scheme?
Three major changes have been made in the EDLI scheme under the revised rules of 2025. First, the limit of insurance cover has been increased to Rs 7 lakh. This amount will be decided on the basis of the average salary of the employee for the last 12 months. Second, now new employees will also get a minimum insurance cover of Rs 50,000, even if their service period is less than one year. Earlier there was no benefit in this situation. Third, if an employee changes jobs and the gap between two jobs is less than two months, his insurance cover will continue.
Who can claim the insurance amount?
The process of insurance claim is also simple. After the death of the employee, his nominee or legal heir can avail the benefit of this insurance amount by submitting a claim form in the regional office of EPFO. The help of the employer can also be taken in this. According to EPFO, every year about 1,000 employees die during work. In such a situation, this scheme can become a big support for their families. Getting such a big insurance cover without any premium is a unique initiative, which will give additional assurance of security to the employees. With these changes, the EDLI scheme has become the most effective free insurance scheme for the working class of India. This initiative is considered an important step in the field of social security.
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