EPFO Rule Change: In good news for crores of employees covered under EPF, the Employees’ Provident Fund Organisation (EPFO) has decided to extend the minimum assurance benefit under the Employees’ Deposit Linked Insurance (EDLI) scheme. The Central Board of Trustees (CBT) took a decision in this regard in its 226th meeting, which was held on March 5, 2020.
Employees’ Deposit Linked Insurance (EDLI) Scheme
As per the EDLI scheme, all EPF members are automatically covered and as part of which employee’s nominee in the case of the former’s demise during service will be paid between Rs. 2.5 lakh to Rs. 6 lakh.
EPFO Rule Change 2020
According to the amended rules, the benefit of EDLI will be provided to family members of a deceased employee, who dies while in service, even if he worked in more than one firm in the 12 months preceding his death. Previously, this benefit was not provided to EPF members who worked in more than one establishment during a continuous period of 12 months preceding his death.
“The Board recommended to extend the provision of minimum assurance benefit of Rs. 2.5/3 Lakh, payable to family members of a deceased employee who dies while in service. Earlier, the benefit of minimum assurance of Rs. 2.5 Lakh and maximum assurance amount of Rs.6 Lakh was not payable where the member worked in more than one establishment during a continuous period of 12 months preceding the month of death. Now Board has approved to extend these benefits even if a member had worked in multiple establishments,” the Ministry of Labour and Employment said in a statement on March 5.
Worth mentioning here is that under the EDLI scheme, the maximum insurance benefit than a member can get is capped at Rs 6 lakh. The decision to change the provision for providing the minimum assurance benefit comes two years after the CBT had decided to hike the minimum assurance limit to Rs 2.5 lakh from Rs 1.5 lakh in 2018.
It may be noted that EPF members are by default covered under the EDLI scheme, which provides for payment of Rs 2.5 – Rs 6 lakh to an employee’s nominee in the event of his death during service.
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