EPFO EDLI Rules Change: Employees’ Provident Fund Organization (EPFO) has decided to simplify the rules of Employees’ Deposit Linked Insurance Scheme (EDLI). The direct benefit of which will be given to the families of such employees, whose death claims were rejected due to taking a short break while changing jobs.
An effort has been made to reduce this problem through a circular issued by EPFO in December 2025. This may prove to be a historic step taken in the interest of the employees. Let us know, what important changes have been made by EPFO?
There will be no service break due to weekend
A major problem in the earlier rules was that if an employee left the old job on Friday and joined a new company on Monday, the intervening Saturday and Sunday were considered a break in service. Technically, due to this service break, the families of the employees had to bear the loss.
For facilities like EDLI, a mandatory condition of being in continuous service was laid down. However, EPFO has now resolved this confusion in the new rules. EPFO has clearly said that if there are weekly holidays in between while changing jobs, then it will not be considered as service break.
Along with weekly holidays, national holidays and holidays declared by the state government will also be included in this. Which simply means that the service of the employee will be considered continuous. Also, the family will not have to be deprived of benefits like insurance or pension.
Minimum guarantee of Rs 50 thousand will be available
In the circular issued by EPFO, it has been decided to increase the minimum payout under EDLI scheme to Rs 50 thousand. Even for those employees whose average PF balance is less than Rs 50 thousand, a minimum amount of Rs 50,000 will be given to their families as insurance.
Also read: It is not low income, but these bad habits that prevent the middle class from becoming rich, know the details.
