The Ministry of Labour and Employment has notified significant amendments to the Employees’ Deposit-Linked Insurance (EDLI) Scheme, 1976, aimed at strengthening financial protection for families of deceased employees under the Employees’ Provident Fund system.
The amendments, issued via G.S.R. 476(E), come into effect from the date of their publication in the Official Gazette, i.e., July 18, 2025.
🔍 Key Changes Under the EDLI (Amendment) Scheme, 2025
✅ 1. Guaranteed Minimum Assurance of ₹50,000
- Even if the average provident fund balance of a deceased employee (in the preceding 12 months or during membership) is less than ₹50,000, the nominee will now receive at least ₹50,000 as assurance benefit.
🔄 2. Relaxed Service Continuity Criteria
- A gap of up to 60 days between two employment spells will not break service continuity.
- This change ensures that multiple short-term jobs within a year are treated as continuous service for eligibility under the scheme.
⏱️ 3. Coverage Extended for Recent Contributors
- If an employee dies within 6 months of the last PF contribution while still officially employed, the nominee will be entitled to assurance benefits, even if there has been no recent deposit.
🧾 What Is the EDLI Scheme?
The Employees’ Deposit-Linked Insurance Scheme is part of the broader Employees’ Provident Funds and Miscellaneous Provisions Act, 1952, offering life insurance coverage to all PF members without any additional premium from employees.
Employers contribute 0.5% of the employee’s wages (subject to limits) toward the EDLI fund. Upon the death of a covered employee during service, the nominee or legal heir receives a lump-sum assurance.
🛡️ Impact of the Amendment
These changes aim to:
- Protect low-income employees who have minimal PF balances.
- Support casual or contract workers with intermittent jobs.
- Ensure greater insurance coverage and financial relief to families of the deceased.
Conclusion:
With this amendment, the Central Government continues its efforts to enhance social security coverage, particularly for the working class engaged under the EPF system. Families of workers can now expect more equitable and assured benefits, even in cases of short employment or low PF contributions.
For official details and claims, beneficiaries should contact their nearest EPFO office or visit the official EPFO website.