EPFO Eases Eligibility Criteria for Life Cover Under Scheme

The Ministry of Labour and Employment has amended the Employees’ Deposit Linked Insurance (EDLI) scheme under EPFO, as per news reports. The change ensures that a minimum assured benefit of ₹50,000 will be paid to the family of a deceased employee, even if the employee’s average provident fund balance was below ₹50,000.

Breaks in Employment 

The new rules clarify that a gap of up to 60 days between two jobs will not break the continuity of service. This means multiple job stints with breaks of less than two months will be added together while calculating the 12-month continuous service required for benefit eligibility.

Coverage for Deaths 

Employees who die within 6 months of making their last PF contribution, and are still on the employer’s rolls, will now be covered under the EDLI scheme. Earlier, such cases were not eligible for benefits unless there was continuous contribution.

The revised criteria were notified on July 18, 2025, and are effective from the same date. These changes amend Paragraph 22 of the EDLI Scheme, 1976, which deals with the scale of benefits and minimum balance requirements for employees.

How EDLI Works

EDLI provides life insurance coverage ranging from ₹2.5 lakh to ₹7 lakh to all EPFO members in case of death during service. The contribution to this scheme is made by the employer alone, at 0.50% of the employee’s basic pay and dearness allowance.

The Central Board of Trustees of EPFO had approved the rule changes earlier in March 2025. With the latest gazette notification, these are now formally part of the scheme.

Read More: EPFO Considers Allowing Partial Access Every 10 Years!

Conclusion

The updated rules aim to cover more employees under the EDLI life insurance scheme by accounting for job changes, contribution gaps, and low PF balances.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.