The Ministry of Labour and Employment has issued the Employees’ Deposit Linked Insurance (Amendment) Scheme, 2025 (“Amendment”) under the Employees’ Provident Funds and Miscellaneous Provisions Act, 1952. The changes aim to broaden employee coverage, ensure a guaranteed minimum benefit, and address gaps in eligibility due to minor breaks in service or recent contribution lapses. The amendments are effective from 18th July 2025.
Key Highlights:
- While earlier no minimum insurance benefit was assured in cases where an employee’s average provident fund balance was below ₹50,000, the Scheme now mandates a minimum payout of ₹50,000 even in such cases if the death occurred during the preceding 12 months or during the employee’s membership including for exempted fund members.
- Earlier, a continuous 12-month service without any break was strictly required to qualify for minimum assurance benefits, whereas now, a gap of up to 60 days between two spells of employment is permitted and such periods will be treated as continuous service for the purpose of determining benefit eligibility.
- Previously, the Scheme did not cover cases where an employee died in service within a few months after the last PF contribution was received, but under the amended provisions, the benefit is now payable if the employee dies within six months of the last contribution while still being on the employer’s rolls, regardless of whether the PF is under the statutory or exempted category.
Source: Ministry of Labour and Employment, Government of India
