EPFO to provide three-year life cover after job loss

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The proposal — likely to be approved — allows the subscribers the option of voluntary retention of EDLI membership, at a lesser rate of contribution, for three years following loss of job.

Here’s new hope for Indian employees as EPFO is likely to give the green signal to a proposal for offering life insurance cover to all subscribers for three years after cessation of employment.

Sharing the additional benefits from the scheme, a source shared in a PTI report that, “The maximum sum assured under the Employees’ Deposit Linked Scheme (EDLI) will soon be enhanced to Rs 6 lakh this month”. Earlier, in September, the Central Board of Trustees (CBT), EPFO’s apex decision making body, had planned to increase the benefits under the EDLI scheme from Rs 3.6 lakh to Rs 6 lakh. However, the decision wasn’t implemented as the notification to amend the scheme was stuck in the Law Ministry. The source also shared that the notification will now be issued this month.

The proposal, on approval, will allow the option of a voluntary retention of EDLI membership to subscribers at a lesser rate of contribution for three years after losing their job. By paying 0.5 per cent of the basic wages of workers as a premium, the employers can make the insurance scheme available for their workers.

The EPFO, as reported recently, also paid over Rs 47,000 crore as member benefits and Rs 8,200 crore as pension payments in the last financial year. Overall, EPFO manages a corpus of over Rs 8.5 lakh crore and its subscriber base exceeds five crore at present.

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