Union Labour Minister Mansukh Mandaviya recently announced an extension of the insurance benefits for members of the Employees’ Provident Fund Organisation (EPFO) under the Employees’ Deposit Linked Insurance (EDLI) scheme. This is great news for more than 6 crore EPFO members, as it will offer life insurance coverage of up to ₹7 lakh. The new benefits will begin retrospectively from April 28, 2024.
The EDLI scheme, which was launched in 1976, is designed to offer financial support to the families of EPFO members in case of a member’s death. In 2018, the scheme introduced a minimum insurance cover of ₹1.5 lakh. Until April 2021, the maximum amount that families could claim was capped at ₹6 lakh.
In a significant update, the government announced on April 28, 2021, that both the lowest and highest benefits under the EDLI scheme would increase. The lowest coverage was increased to ₹2.5 lakh, and the highest benefit was set at ₹7 lakh for a duration of three years. This change is targeted to provide better financial security for the families of EPFO members.
The government also made it easier for employees to qualify for this insurance by moderating the rule that required them to have worked for 12 months in one job. Even if somebody changes jobs within that time, they can still get the insurance coverage. This adaptability is vital for many employees who may change jobs but want to make sure their families are financially covered.
Initially, these increased benefits were set to last until April 27, 2024, but with the latest declaration, they will be prolonged further. This indicates the government’s dedication to providing financial security for workers and their families.
The EDLI scheme is an important safety net for millions of employees and their families, mostly in hard times. With more people changing jobs these days, being able to keep insurance coverage no matter what job they have is a big improvement. This change will give many workers contentment, bearing in mind their families will get financial support if anything happens to them.
Labor unions and workers have highly regarded the publication of these added benefits, as it talks about a vital need for financial protection. It enlightens the government’s focus on bettering employee welfare and improving the support available to the employees.
In a nutshell, the expansion of the EDLI scheme’s insurance benefits is a helpful step for EPFO members. It not only raises the financial support available to families in times of difficulty, but also makes it smooth for workers to be eligible for the handling. This way indicates a motivated approach to guarantee the safety of numerous workers and their families in India.
