On 18-7-2025, the Ministry of Labour and Employment notified the Employees’ Deposit-Linked Insurance (Amendment) Scheme, 2025 (EDLI Scheme) to mark a significant step towards enhancement to the social security benefits available to members of the Employees’ Provident Fund. The provisions of this Scheme came into effect on 19-7-2025.
Key Points Employees’ Deposit-Linked Insurance Scheme:
- This Amendment Scheme updates Paragraph 22 of the Employees’ Deposit Linked Insurance Scheme, 1976, to strengthen the financial assurance offered to workers’ families in the event of untimely death during service.
- It ensures a minimum assurance benefit of ₹50,000, even if the deceased employee’s average provident fund balance is less than that amount.
- This provision applies to employees who were members of the Fund or of a provident fund exempted under Section 17 of the Employees’ Provident Funds and Miscellaneous Provisions Act, 1952, (EPF Act) and whose death occurred during the preceding 12 months or while in service. This move secures a guaranteed insurance payout for families regardless of contribution history.
- The revised scheme now permits a break of up to 60 days between two jobs, considering such intervals as part of a continuous 12 months service period, ensuring broader coverage for employees who may have had short gaps between jobs.
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It introduces coverage for employees who die within six months of their last PF contribution, if they are on roll with the employer.
This 2025 Amendment reflects a compassionate and inclusive approach to social insurance, reinforcing the government’s commitment to supporting the workforce during times of distress. These measures reflect a progressive and inclusive approach to social security, especially for employees navigating job transitions or short-term breaks in service.
