EPFO New Rules: Family Eligible For Rs 50,000 Payout In Event Of PF Holder’s Death Even If Fund Balance Is Less Than… | Personal Finance News
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New Delhi: The Ministry of Labour and Employment notified the Employees’ Deposit-Linked Insurance (Amendment) Scheme, 2025 (EDLI Scheme), thus relaxing the criteria for getting Rs 50,000 payout in the event of death of PF subscriber.
The EPFO notification said that in the event of death of an employee under during the preceding twelve months or during the period of his membership, even if the average provident fund balance of an employee who is a member of the Fund or of a provident fund exempted under section 17 of the Act, as the case may be, is less than Rs 50,000, a minimum assurance benefit of Rs 50,000 shall be payable.
Further, the notification explained that for the purpose of determination of continuous period of twelve months required for eligibility of minimum assurance benefits payable under sub-paragraph (3) of the Scheme, the gap of upto sixty days between two spells of employment shall be ignored and such multiple services shall be added being treated as continuous service.
EPFO said, in the event an employee who is a member of the Fund or of a provident fund exempted under section 17 of the Act, as the case may be, dies in service within six months of the last contribution received while still being on the rolls of the employer, such an employee shall get the assurance benefit as per the Scheme.
Employee Deposit Linked Insurance (EDLI) scheme to offer insurance benefits to EPF members who pass away within a year of employment, ensuring their families receive financial support during difficult times. Earlier, families of employees who passed away within a year of joining were ineligible for insurance benefits. But after revision in rules, it now guarantees a Rs 50,000 payout, offering crucial financial assistance to families in such unfortunate circumstances.
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