The Employees’ Provident Fund Organisation (EPFO) has issued two major updates for its members. The first relates to the EPFO’s EDLI (Employee Deposit Linked Insurance Scheme). The second relates to job holidays and weekend vacations. Let’s find out the details.
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The Employees’ Provident Fund Organization (EPFO) has released two major updates for its members. The first update relates to the EPFO’s EDLI (Employee Deposit Linked Insurance Scheme). The second update concerns holidays and weekend leave. Therefore, if you are an EPFO member, this news will be very important for you. The Ministry of Labor and Employment announced these two major EPFO updates on Friday. Let’s find out more.
Insurance Cover Under the EDLI Scheme
The EPFO has now revised the rules for insurance cover under the EDLI scheme for employees. Under the new changes, even if an employee’s PF balance is less than ₹50,000, the employee’s family will receive a minimum insurance benefit of ₹50,000. Previously, this benefit was available only if the employee’s account balance was up to ₹50,000.
Furthermore, if the employee passes away within six months of their last PF contribution, the family will still receive the minimum EDLI payout. However, for this it is necessary for the member to be on the role of employer.
A short gap or break will be considered full service.
It is often seen that employees experience a short break in their service. This break often occurs due to a job change. In such situations, EDLI claims are often rejected or settled with a lower amount. However, according to the new rules, even short breaks will be considered regular service.
The EPFO stated in its circular that if the employee resumes employment with another organization covered under the EPF & MP Act, 1952, after a Saturday, Sunday, or declared weekly holiday, national holiday, gazetted holiday, state holiday, or restricted holiday, these holidays will not be considered a break in service. They will be considered continuous service. However, the condition for this is that these holidays should be the only holidays between the date of leaving the first job and the date of joining the second job, and there should be no additional gap.
Even a 60-day job gap will not be considered a break.
Under the new EPFO rules, a job change with a gap of up to 60 days will be considered continuous service. Even in such circumstances, employees will receive the full benefit of the EDLI scheme, meaning they will still receive EDLI benefits even if they have not completed 12 months of continuous service.
