EPFO has taken a big decision in the interest of its employees and their families. This step of EPFO is also being appreciated socially. EPF is giving free insurance cover of up to Rs 7 lakh to its users.
Employees’ Provident Fund Organization (EPFO) may see major changes in the Employee Deposit Linked Insurance (EDLI) scheme in the year 2025. The purpose of these changes is to provide better financial security to EPF users and their families. The biggest thing is that employees will not have to pay any premium for this insurance, which simply means that it is completely free.
How does this scheme work?
EDLI scheme was started in the year 1976. This scheme provides insurance security 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 percent of the basic salary of the employee to this scheme. Earlier, under this scheme, a maximum insurance cover of Rs 2.5 lakh was available, the amount of which has now been increased to Rs 7 lakh.
How much insurance is available in EDLI scheme?
Under the revised rules of the year 2025, 3 major changes have been made in the EDLI scheme. First, the limit of insurance cover has been increased to Rs 7 lakh. This amount is to 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 is less than a year. In the earlier situation, there was no benefit. Third, if an employee changes jobs and the gap between 2 jobs is less than 2 months, then his insurance cover will continue.
Who can claim for insurance cover?
The process of insurance claim is also quite simple. After the death of the employee, his nominee or legal heir can avail the huge benefit of this insurance amount by submitting the 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 while working. In such a situation, this scheme can bring relief to their families. Getting such a big insurance cover without any premium is a unique initiative, which can give additional confidence of security to the employees. With these changes, EDLI scheme has become the most effective free insurance scheme for the labor segment of India.
