PF New Rule: Good News for PF Account Holders, Now Get ₹50,000 Even with an Empty PF Account!

PF New Rule: The Employees’ Provident Fund Organisation (EPFO) has recently made some significant changes to the Employees’ Deposit Linked Insurance (EDLI) scheme, which comes as a great relief for millions of workers in the organized sector across the country. As a result of these new regulations, the families of PF account holders will now receive greater financial security. Let’s delve into the details of these new rules.

Major Changes

According to the new EPFO rules, the family of an employee will now receive a guaranteed insurance amount of ₹50,000 even if there is no minimum balance in the PF account. Previously, having a minimum balance in the account was mandatory to avail this benefit, which was a major obstacle for the families of many low-wage earners. With this change, an employee’s family will no longer have to face financial hardship in the event of their death.

Other Important Changes

• Continuous Service: If an employee joins a new job within a 60-day gap after leaving the previous one, their service will be considered continuous. This will allow the employee’s family to receive the full insurance benefits under the EDLI scheme. This rule was previously quite strict, causing many families to be deprived of this benefit.
• Death within 6 months of last salary: If an employee dies within six months of receiving their last salary, their family can still claim the EDLI insurance benefit. This rule will be extremely helpful for families where no PF contributions were made for some time before the employee’s death.
• Insurance Amount: The insurance coverage under the EDLI scheme has been increased from ₹2.5 lakh to up to ₹7 lakh. In the event of an employee’s death, their family will receive this lump-sum amount, which will help them maintain financial stability.

What is the EDLI Scheme?

The Employees’ Deposit Linked Insurance (EDLI) scheme was launched in 1976. Its main objective is to provide financial security to the families of employees working in the organized sector after their death. The biggest advantage of this scheme is that employees do not have to pay any premium for it; the employer contributes a portion of the employee’s salary to this scheme.

Impact of the New Rules

These new rules are undoubtedly a significant step forward for employees and their families. These changes will prove to be particularly beneficial for low-income employees or those who frequently change jobs. From now on, even if there is no balance in the PF account or a 60-day gap in employment, the employee’s family will not be deprived of financial protection. This is a commendable initiative by the government that will further strengthen the social security of workers.