The Employees’ Provident Fund Organsiation (EPFO) has recently revised the Employee Deposit Linked Insurance (EDLI) scheme, which will now cover Employees Provident Fund (EPF) subscribers who pass away before completing a year of employment. Till now, the families of employees who happen to die within a year of employment were not eligible for any insurance. With the latest revision, such families will be able to get Rs 50,000 as financial assistance. This will benefit at least a thousand cases of deaths of employees while in service.
The EDLI scheme will offer life insurance to all subscribers of EPF. The revised EDLI scheme will also see the deceased employees’ families getting insurance coverage of Rs 2.5 lakh to Rs 7 lakh, assuring significant financial security to deal with emergencies or contingencies.
Employees who change jobs will now experience no break in insurance coverage, even if there’s a two-month break between the old and new job.
The penalty on delayed PF deposits has been brought down to just one per cent per month. This comes as a relief to employers, while employees are assured of benefits on time.
That is not all; the EPFO has announced an annual interest rate of 8.25 per cent for FY 2024-25 on EPF savings, so that employees enjoy better returns on their funds.
