The Employees’ Provident Fund Organisation offers a very important EDLI Scheme for the benefit of its members. This scheme financially secures the families of EPF contributors on the death of a member while in service. Unlike other insurance programs, this EDLI does not require any premium to be deducted from an employee’s salary or their PF account; it is an absolutely free benefit extending to over six crore members of the EPFO.
Insurance Payout Description
An insurance payment of EDLI is calculated on the basis of an average monthly salary of the member during the preceding twelve months multiplied by 35 along with a bonus payment of up to ₹1.75 lakh. In respect of insurance sums payable to the nominee, the minimum amount is set at ₹2.5 lakh, while the maximum is fixed at ₹7 lakh. Apart from providing decent support to the nominee or legal heirs, the structure is pretty much a financial safety net for families, especially in the onset of sudden demise.
Recent Rule Changes
The year 2025 saw the Ministry of Labour and Employment make sweeping changes to the EDLI scheme to make it more accessible. Should an EPF member die within the first year of service, his or her family will be assured of a minimum insurance benefit of ₹50,000 irrespective of the PF balance. Also, a job gap for not exceeding 60 days shall be treated as continuous service, thereby ensuring uninterrupted eligibility. If such member dies within six months from the last time the person contributed to PF and his or her name is still on the employer’s payroll, their family shall also be eligible to receive the benefits.
Benefits for Families and Nominees
All these changes will remove previous constraints, such as the need for a minimum PF balance or an uninterrupted period of service. Under the relaxed provisions, the families of new employees, contract employees, or employees who have short breaks in employment will be benefited-about 5,000 families every year. As an employer, 0.5% of the member’s wage up to ₹15,000) is contributed to fund the scheme; hence, no burden lies on the employees.
EDLI Benefit Claim Procedure
To get EDLI benefits, the nominees must submit Form-5IF to the regional EPF office, along with a death certificate, copies of the last PF contribution, and the cancelled cheque of the nominee’s bank account or the name of the bank account holder. The document sequence has been maintained here for quick disbursal. Have the nominees make an online claim if they have e-nominated online through the EPFO portal. These changes strengthen the knock on effect of financial security under EDLI, pushing it to be the last stand for EPFO members’ families.
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