EPFO Scheme: Employees Provident Fund is an important information for the account holders of the organization. The EPFO has made some significant changes in the Employees Deposit Linked Insurance Scheme. It will now be more simple to file a death claim through these changes and will increase the coverage along with insurance payment, which will help thousands of families every year.
In fact, if an EPF member had passed away during a job before a year, his family did not get Edli death benefits. But now, if the EPF member dies in the service period less than a year, his family will get a minimum insurance benefit of ₹ 50,000. As a result of this amendment, more than 5,000 cases of death during service are expected to get more benefits every year.
What is EDLI scheme, how to get benefits
The Government of India launched the EDLI scheme in 1976, which aims to provide financial security to their families in terms of untimely demise of employees. This scheme is for employees who are registered under EPF and especially benefit EPF account holders who die in the first year of jobs. Apart from this, job -changing employees also get the benefit of this insurance coverage.
Recently, due to changes in EPFO’s rules, new EPF members will also get EDLI benefits if their death occurs within the first year of service. In such a situation, life insurance of at least Rs 50,000 will be paid to the EPF member’s family.
Thus the scheme gets a profit of Rs 7 lakh
After a recent amendment to the EDLI scheme, employees will now have insurance coverage ranging from Rs 2.5 lakh to Rs 7 lakh. In simple terms, the insurance amount received under EDLI is 35 times the monthly salary received in the last 12 months. For example, if the monthly salary of an employee is Rs 15,000, then it will be 35 times 5 lakh 25 thousand rupees, along with it, he will also get a bonus of Rs 1,75,000. The total insurance amount has been fixed at Rs 7 lakh under this scheme. Earlier, if the EPF members had a difference of 1-2 days while changing the job, it was considered a break in the service period, which could not benefit the family. But now if there is a difference of up to two months between two jobs, it will be considered a continuous service. This will provide direct benefits to more than 1,000 families every year.
