Edli Update: Holiday during job change? Tension over! Big relief in new EPFO rule, get benefits up to 7 Lakhs
Edli Update: Changing jobs often comes with a significant worry regarding the gap between leaving the old job and joining the new one. Specifically, if the days in between fall on a weekend (Saturday/Sunday) or a public holiday, does it break the ‘Continuous Service’? This fear was valid for a long time. A break in service often led to complications in claiming benefits under the Employees’ Deposit Linked Insurance (EDLI) scheme managed by the Employees’ Provident Fund Organization (EPFO). However, the EPFO has now put an end to this concern. Through a major amendment to the 1952 Act, the organization has brought great relief to salaried employees.
What Does the New Guideline Say?
According to a circular issued by the EPFO on December 17, 2025, if weekly offs (like Saturday and Sunday), national holidays, or gazetted holidays fall between the period of leaving one job and joining another, these will no longer be considered as a ‘Break in Service’.
- The Previous Issue: Earlier, if an employee left a job on Friday and joined a new one on Monday, the intervening Saturday and Sunday were often treated as a ‘break’. Consequently, if the employee passed away during this transition, their family faced legal hurdles in claiming the EDLI insurance amount.
- Current Benefit: Under the new rules, these holidays will be treated as an integral part of the service. Technically, it will be considered that the employee was on leave, ensuring that the family faces no obstacles in claiming insurance benefits.
Benefits Even with a 60-Day Gap
Not just weekly offs or public holidays, the EPFO has provided further relaxation for employees. The guideline states that for employees working in multiple establishments, a gap of up to 60 days between two jobs will still be considered as ‘Continuous Service’. In simple terms, even if you sit at home for up to 2 months after leaving a job and then join a new one, your service continuity remains intact, and your family remains eligible for insurance benefits during this period.
EDLI Scheme Financial Benefits at a Glance
The ‘Employees’ Deposit Linked Insurance’ (EDLI) scheme is crucial for the financial security of an employee’s family in case of untimely death. The key benefits available under this scheme are detailed in the table below:
Get Instant News Updates!
Join on Telegram| Description | Amount / Rule |
|---|---|
| Maximum Insurance Coverage | ₹ 7 Lakh |
| Minimum Insurance Claim | ₹ 2.5 Lakh (Conditions apply) |
| Revised Minimum Benefit (Service < 1 year) | ₹ 50,000 |
| Premium Cost | Borne entirely by the employer (0.5% of basic salary) |
Protection for Short-term Service
Often, employees work for a very short duration or have a low balance in their PF accounts. Keeping them in mind, a significant amendment has been made to the EDLI scheme. For employees who have not worked for a continuous 12 months before death and whose average PF balance is less than ₹50,000, the minimum insurance benefit for their family or legal heirs has been increased to ₹ 50,000.
Overall, this new interpretation and rule amendment by the EPFO will further strengthen the financial security of employees and their families. The guideline ensures that grieving families are not deprived of their rightful claims due to minor administrative technicalities.
Disclaimer: This article is for informational purposes only. For any financial decisions or claims, it is advisable to consult the official EPFO website or an expert.
