The Labour Ministry has recently notified new criteria for minimum assurance benefits under the Employees' Deposit Linked Insurance (EDLI) Scheme, aiming to provide financial security to the families of deceased employees. These changes, approved by the central board of trustees of EPFO, address previous limitations and expand the scope of the scheme to cover more workers.

Key Highlights of the Amended EDLI Scheme:

• Minimum Assurance Benefit: Even if an EPF member dies before completing a full year of continuous service, a minimum life insurance payment of ₹50,000 will be provided.
• Revised Assurance Benefits: In the event of the death of an employee who was continuously employed for 12 months prior to their death, the benefit payable includes 35 times the average monthly wage (capped at ₹15,000/month), plus 50% of the average balance in the provident fund during the preceding 12 months (subject to a ceiling of ₹1,75,000). The minimum assurance benefit is ₹2.5 lakh, and the maximum assurance benefit is ₹7 lakh.
• Death During Service: If an employee who is a member of the Fund dies in service within six months of the last contribution received while still being on the rolls of the employer, such an employee will get the assurance benefit as per the Scheme.
• Continuous Service: 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.
• Benefits for Families with Lapsed Contributions: The updated plan ensures that as long as their name is still on the employer's registers, the EDLI benefit will be paid out if a member passes away within six months of their final contribution.
• Part-Time Employees: For part-time employees working across multiple establishments, benefits are calculated based on the aggregate average wages from all establishments, subject to the wage ceiling of ₹15,000/month.

Impact of the Amendments:

These amendments are expected to benefit a significant number of families. It is anticipated that over 5,000 in-service death cases will receive increased benefits each year due to the minimum assurance provision. Furthermore, the change addressing contribution lapses is projected to benefit over 14,000 families annually. The provision to treat short gaps between employments as continuous service is expected to aid over 1,000 in-service mortality cases each year.

By eliminating previous restrictions related to contribution gaps and short service tenures, the Labour Ministry aims to provide more inclusive and readily accessible financial assistance to the families of deceased employees. These changes reflect a commitment to improving the welfare and security of workers and their families.