🛡️ EDLI Scheme (Amendment), 2025: Key Changes You Must Know!

EDLI Scheme Amendment 2025 Explained: ₹50,000 Minimum Insurance, 60-Day Gap Rule & More

📜 Background

The Employees' Deposit Linked Insurance (EDLI) Scheme, 1976, is a social security scheme under the Employees’ Provident Fund and Miscellaneous Provisions Act, 1952. It provides life insurance benefits to employees who are members of EPFO or an exempted Provident Fund.

On July 18, 2025, the Ministry of Labour & Employment notified amendments to strengthen the benefits under the EDLI scheme through G.S.R. 476(E).

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✅ Key Amendments in EDLI Scheme – 2025

🔹 1. Guaranteed Minimum Assurance of ₹50,000

A new sub-paragraph (1A) is inserted in Paragraph 22 of the Scheme:

“In the event of death of an employee... even if the average PF balance is less than ₹50,000, a minimum assurance benefit of ₹50,000 shall be payable.”

🔍 Impact:
This ensures a minimum insurance coverage for all eligible employees, irrespective of the PF balance — especially beneficial for lower-income and short-tenure employees.

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🔹 2. Service Gap Upto 60 Days to Be Ignored

A proviso is added for continuous service calculation under sub-paragraph (3):

“Gap of up to 60 days between two spells of employment shall be ignored... such multiple services shall be added for the purpose of 12-month continuous service.”

🔍 Impact:
This is a relief for contractual and gig workers who face short breaks in service. Their insurance eligibility won't be denied due to minor gaps in employment.

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🔹 3. Benefit for Death Within 6 Months of Last Contribution

A new sub-paragraph (5) has been inserted:

If a member dies within 6 months of the last PF contribution, while still on the rolls of the employer, the employee will be entitled to EDLI assurance benefit.

🔍 Impact:
This extends protection to employees during short-term unpaid leaves or secondment, provided they are not formally terminated.

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❓ FAQs – EDLI Scheme Amendment 2025

🔸 Q1. Who is eligible under this new amendment?

➡️ Any EPFO member or a member of an exempted PF trust under Section 17, who meets any of the conditions below:

• Was in service in the past 12 months, or

• Dies within 6 months of last contribution, while on the rolls of the employer.

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🔸 Q2. What if my average PF balance is below ₹50,000?

➡️ Even if your average balance is less, you will still receive a minimum insurance benefit of ₹50,000, as per the amendment.

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🔸 Q3. I had a 2-month employment break. Will I lose my benefit?

➡️ No. As per the amendment, service gaps up to 60 days will be ignored for determining continuous service for EDLI eligibility.

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🔸 Q4. Does this apply to employees under exempted trusts?

➡️ Yes. Members of exempted PF trusts under Section 17 are also covered under these amended provisions.

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🔸 Q5. What is the effective date of this amendment?

➡️ The changes are effective from the date of publication in the Official Gazette: July 18, 2025.

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📝 Conclusion

The EDLI (Amendment) Scheme, 2025 is a progressive step toward protecting the dependents of employees with minimum assured benefits, flexible service continuity rules, and extended coverage for recently disengaged members. It aligns with the government's goal of universal social security for organized and semi-organized sector workers. 

Notification - EDLI Scheme (Amendment), 2025

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