Good news for employees! Central govt hikes maximum sum assured payable under EDLI scheme

The central government has taken an important decision to provide relief to the workers during the Corona crisis. Under this, the Board of Trustees of the Employees Provident Fund Organization (EPFO) has increased the sum insured under the Employee Deposit Linked Insurance Scheme 1976 (EDLI Scheme, 1976) from Rs 6 lakh to Rs 7 lakh.

The Central Board of Trustees (CBT) of the EPFO, chaired by Labor Minister Santosh Gangwar, had decided on September 9, 2020 to increase the sum insured in the EDLI scheme.The CBT, in its meeting held on September 9, 2020, had decided to keep the minimum sum insured at Rs 2.5 lakh under the scheme beyond February 14, 2020.

Union Minister Santosh Gangwar said that the Ministry of Labor and Employment has issued a notification on April 28, 2021 to implement the decision to increase the maximum sum insured under the EDLI scheme to Rs 7 lakh. Labor Secretary Apoorva Chandra said the maximum sum assured would be applicable from the date of notification. He further said the provision of minimum sum assured of Rs 2.5 lakh would be applicable retrospectively from February 15, 2020.

The Ministry of Labor and Employment, in a notification dated February 15, 2018, had increased the minimum sum insured under EDLI to Rs 2.5 lakh. This increase was made for two years. It expired on February 15, 2020.  Therefore, the amendment was re-notified to continue the said benefit to give effect to that retrospectively from February 15, 2020.  According to the ministry, this will not affect the interests of any individual. The CBT had in September 2020 approved an amendment in paragraph 22 (3) of the 1976 EDLI scheme to increase the sum assured from Rs 6 lakh to Rs 7 lakh.

The amendment to paragraph 22 (3) of the EDLI Scheme, 1976 is intended to provide relief to the families and dependents of the members of the scheme who unfortunately died while in service.
At the CBT meeting in March 2020, EPFO ​​trustees recommended a benefit of at least Rs 2.5 lakh to the families of deceased employees who died in the line of duty. Earlier, the benefit of minimum assurance of Rs. 2.5 lakh and maximum assurance amount of Rs 6 Lakh was not payable where the member worked in more than one establishment during a continuous period of 12 months preceding the month of death.