The Employees’ Deposit Linked Insurance ( EDLI ) program has undergone significant changes recently owing to the Employees’ Provident Fund Organization ( EPFO ). At the Central Board of Trustees’ (CBT) 237th meeting, which was presided over by Union Labour Minister Mansukh Mandaviya, these changes were accepted. The annual interest rate that CBT recommends for EPF participants is 8.25 percent.
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In the event that an EPF member dies before serving for a full year continuously, a minimum life insurance payout of Rs 50,000 would now be paid. Benefits for more than 5,000 in-service death cases each year are anticipated to increase as a result of this adjustment.
When a member passed away after a lapse in contributions, EDLI benefits were previously refused since it was seen to be a death outside of duty. As long as their name is still on the employer’s registers, the EDLI benefit will be paid out under the updated plan if a member passes away within six months of their final contribution. Over 14,000 of these instances are expected to benefit annually from this modification.
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In the past, EDLI payments were denied for even a brief one- or two-day break between jobs (such as weekends or holidays) since the one-year continuous service criteria was not fulfilled. The new changes guarantee eligibility for EDLI benefits ranging from Rs 2.5 lakh to Rs 7 lakh by permitting a break of up to two months between two periods of employment to be regarded as continuous service. Over 1,000 in-service mortality cases are anticipated to benefit from this innovation per year.
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