EPFO Clarifies EDLI Rules: Relief for Private Sector Employees and Their Families

Private sector employees have reason to cheer. The Employees’ Provident Fund Organisation (EPFO) has issued a clarification regarding the Employee Deposit Linked Insurance (EDLI) scheme, resolving confusion around “continuous service.”

EPFO has confirmed that if an employee leaves one job and joins another, weekends, national holidays, or government holidays in between will not be counted as a break in service. This means that during death claim settlements, such gaps will still be considered as continuous service, ensuring families receive their rightful insurance. Earlier, many claims were rejected due to this misunderstanding.

Why This Matters
In several cases, short breaks between jobs—like weekends or holidays—were wrongly counted as service gaps, leading to claim rejections or reduced payouts. For instance, an employee who left one company on a Friday and joined another on Monday was previously denied EDLI benefits, despite having over 12 months of continuous service.

When a Job Break Is Not Counted
If the gap between leaving an old company and joining a new EPF-covered company includes only Saturdays, Sundays, weekly offs, national or state holidays, the service is still considered continuous, provided the employee joins the new company immediately after the break.

Increased Insurance Payouts for Dependents
EPFO has also ensured that if a member had an average PF balance of less than ₹50,000 and had not completed 12 months of continuous service, their dependents will still receive a minimum claim of ₹50,000.

Claims Within Six Months
If a member passes away during employment, and their last PF contribution was made within six months, their family will be eligible for EDLI benefits, provided the employee was registered on the company’s rolls.

Relief for Employees with Multiple Employers
Employees who have worked with multiple EPF-covered companies will also be considered as having continuous service, regardless of a gap of up to 60 days between jobs.

What is EDLI?
The Employee Deposit Linked Insurance (EDLI) scheme provides financial security to families of private-sector employees in the event of the employee’s death during service.

Special Opportunity for Uncovered Employees
EPFO has urged companies to enroll eligible employees who were previously left out of PF coverage. Under the Employees Enrollment Scheme (EES) 2025, launched in November 2025, companies have a six-month window to include employees who worked between 1 July 2017 and 31 October 2025 but were not under PF coverage.

This move ensures broader financial protection for private sector workers and their families, removing long-standing confusion around EDLI eligibility.