EPFO Rule Change: The Ministry of Labor and Employment has made changes in the EPFO’s EDLI scheme, due to which now insurance benefits of Rs 50,000 will be available even on low PF balance. This will directly benefit millions of employees and their families.
EPFO Rule Change: The Ministry of Labor and Employment on Friday gave a big relief in the rules of EPFO (Employees Provident Fund Organization)’s EDLI i.e. Employee Deposit Linked Insurance Scheme. Now there will not be strict conditions like before to take advantage of this scheme. This will directly benefit lakhs of employees and their families, especially those families whose members have passed away due to some reason during the job.
The recent decision related to EPFO will benefit those people who are working in unorganized or low salary sector and who do not have any other insurance protection. The government is trying to ensure that employees not only get a chance to save, but their families can also get financial support in difficult times.
Employee’s family will get insurance cover of Rs 50,000
According to the notification issued on Friday, now even if the PF balance of an employee is less than ₹ 50,000, even then on his death, the employee’s family will get an insurance benefit of at least ₹ 50,000. According to the Economic Times report, earlier to avail this benefit, it was necessary to have a balance up to a prescribed limit in the employee’s account, but now this condition has been removed.
What will happen if there is a gap of 60 days?
Apart from this, another important change has been made in the scheme. According to this, now while calculating the continuous service of 12 months, if there is a gap of up to 60 days between two jobs of an employee, then it will no longer be considered a break. That is, if you have done 2-3 jobs and there is a break of less than 2 months between them, then all the jobs combined will be considered as continuous service and you will get the full benefit of insurance.
Not only this, if an employee is a member of a PF scheme (whether it is a normal PF or a PF exempted under section 17) and dies within 6 months of the last PF contribution while in service, the family will still be given insurance money under this scheme provided the employee is on the company’s roll at that time.
The focus of EPFO’s EDLI scheme is to provide financial support to the family of the employees in such an unfortunate situation when the earning member of the family passes away. This gives peace of mind to the employees and security to their families, and they do not have to pay any separate insurance premium.
If the nominee’s name is not included
If the PF account holder has not given the nominee’s name in his account and he dies, then the PF amount will be given to his legal heir. For this, the heir will have to submit his Aadhaar card and other necessary documents so that his identity and rights can be confirmed.
