The Central Government has notified important amendments to the Employees’ Deposit Linked Insurance Scheme, 1976 (EDLI Scheme), vide Gazette Notification No. G.S.R. 476(E) dated 18th July 2025. These changes aim to extend better insurance benefits under the EPF framework. Key highlights include:
Minimum Insurance Benefit:
In case of death of an EPF member during service or within the preceding 12 months, even if their average Provident Fund balance is less than ₹50,000, a minimum insurance benefit of ₹50,000 will be payable.
Continuity of Service Clarified:
For calculating the required 12 months of continuous service, a gap of up to 60 days between two spells of employment will be ignored. Multiple spells will be treated as continuous service.
Coverage After Last Contribution:
If an exempted or non-exempted member dies within 6 months of their last contribution, while still being on the employer’s rolls, they will be eligible for insurance benefit under the EDLI Scheme.
These amendments are effective from the date of publication in the Official Gazette and will enhance the scope and reach of social security for employees under the Employees’ Provident Funds and Miscellaneous Provisions Act, 1952.
For HR Departments and Employers:
Ensure to take note of these changes and update your compliance and employee communication processes accordingly.
For more updates and assistance on EPF compliance and EDLI provisions, feel free to reach out to Sankhla Consultants.
Please explain the calculation of EDLI amount