In 2025, the Ministry of Labour and Employment introduced new guidelines for the EDLI (Employees' Deposit Linked Insurance) scheme. The scheme comes under EPFO (Employees' Provident Fund Organisation). With these EPFO rule changes, the government aims to make the insurance benefits more accessible for all covered members.
Here's a look at the revised eligibility, coverage rules, and how they boost overall EPFO benefits.
EDLI Changes to Know About
Primarily, EDLI ensures that if an active EPF subscriber passes away during service, their nominee receives a one-time life cover under it (even if no separate insurance policy is in place). This benefit is in addition to other EPFO benefits, such as the employees’ pension scheme and Provident Fund.
The Central Board of Trustees of EPFO approved key amendments to the EDLI scheme at its meeting held in February 2025. These changes were later established as guidelines by the Labour Ministry in July 2025.
Let’s take a closer look at each of these new provisions.
Minimum Insurance Benefit
The life cover under EDLI is available to all employees who contribute to the EPF. It is managed directly by the EPFO without needing any separate enrolment. The most notable recent update is the setting up of a minimum life cover under EDLI. As per the latest EPFO rule changes, a minimum insurance benefit of ₹50,00 is now assured under the scheme.
This means that in the event of an EPF subscriber’s death, the nominee will receive at least ₹50,000 (even if the subscriber’s PF balance is less than that). The maximum benefit under the scheme remains ₹7 lakh.
This EPFO rule change ensures better financial support to families, especially for those in lower-income jobs.
Coverage Even After Non-Contributory Period
Another important update to the EDLI scheme is regarding coverage during a non-contributory period before their demise.
The EPFO rule changes now allow coverage even if the member has not contributed to their EPF account for up to six months before their demise.
This means that if an employee dies within six months of their last contribution, but is still officially employed (i.e., not terminated or resigned), the nominee will still receive EPFO life insurance coverage. The only condition is that the employee must remain on the employer’s official payroll during this period.
Relaxed Rules Regarding Service Continuity
Earlier, to qualify for the EDLI scheme, employees had to be in continuous service and contribute to EPF regularly. However, the revised rules now consider a break of up to 60 days between jobs as continuous service, too.
Thus, if an employee had interrupted service but contributed to the EPF account, the member will still be eligible for EPFO life insurance benefits.
Why These Changes Matter
If you hold an EPF account, these changes can bring you and your co-subscribers some considerable benefits.
Greater coverage
More employees are now eligible for EPFO benefits, including those who have gaps in employment.
Assured financial support
The guaranteed minimum payout of ₹50,00 can provide much-needed relief to the dependents of deceased employees.
Simpler eligibility
By relaxing the rules around service continuity and post-employment contributions, the central government has made the scheme fairer and more inclusive.
All these updates make EDLI a valuable safety net for employees. They can consider EPF and EDLI a solid part of their overall retirement planning.
If you are an EPFO member looking to supplement your life insurance or retirement planning, consider opting for a pension plan in India from private players. You can go for market-linked options to build a solid corpus or even consider an old age pension scheme for safe, predictable returns.
A retirement calculator can be a great tool in this regard. It can help you determine the right amount to help you live peacefully in your golden years.
The latest changes to the EDLI scheme make it easier for employees and their families to get life insurance support during tough times. With better coverage rules and a guaranteed payout, the scheme now offers more EPFO benefits to workers across different job situations. These updates help ensure that no family is left without support when it is needed the most.
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