EPFO new rule! EPF account will now get an additional benefit of up to Rs 7 lakh, learn new decision

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On the death of employees falling under the Employees Provident Fund Organization (EPFO), the limit for the maximum assurance to their dependents has been increased. Now the maximum insurance benefit will be 7 lakh rupees under the Employees Deposit Linked Insurance (EDLI) Scheme 1976, which is currently 6 lakh rupees. The decision was taken at a meeting of the Central Board of Trustees (CBT), EPF, chaired by Labor Minister Santosh Gangwar on Wednesday. The meeting was virtual and the interest rate on EPF was also fixed for the financial year 2019-20.

The CBT has decided to increase the maximum sum assured under the Employees Deposit Linked Insurance (EDLI) Scheme 1976 from the current Rs 6 lakh to Rs 7 lakh. For this, the Board has approved amendment in paragraph 22 (3) of EDLI 1976. With this decision, in case of unfortunate death of the members of the scheme, they will be able to provide additional help to the people / families dependent on them.

What is EDLI Scheme

EPFO also provides life insurance facility to its subscribers/member employees. All subscribers of EPFO ​​are covered under the EDLI 1976 scheme. The EDLI scheme can be claimed on behalf of the nominee of the Member Employee by the sickness, accident or natural death of the employee. Now this benefit is also being given to the aggrieved family of employees who have worked in more than one establishment within 12 months immediately before death. There is a lump sum payment. Employees do not have to pay any amount in EDLI. The company collects the premium in exchange for the employee.

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