EPFO Update: Often, salaried employees look at their monthly salary slips and simply consider the PF deduction as a form of savings, without giving it much thought.
Most employees believe that PF is only useful after retirement or as a way to withdraw some money when needed. But the reality is far more significant and reassuring. Very few people know that the PF system is not limited to just savings and pension, but also provides financial support to the family during difficult times.
Under EPFO, there is a facility that provides employees or their families with a security benefit of up to ₹7 lakh without any additional cost. This information is especially for private sector employees whose salaries are subject to monthly PF deductions, but who are unaware of the full benefits.
What is EPFO, and why is it not limited to just PF?
In India, the PF accounts of millions of private sector employees are managed by the Employees’ Provident Fund Organisation (EPFO). EPFO’s function is not limited to just collecting PF contributions and paying interest. This organisation also takes care of the social security of employees. This is why EPFO has included certain schemes for its members that are helpful both during and after employment. One of these extremely important schemes is EDLI, about which very few people are seriously aware.
What is the EDLI scheme and why is it so important?
EDLI, or Employees’ Deposit Linked Insurance Scheme, is an EPFO scheme that provides life insurance coverage to employees. In simple terms, it’s a type of life insurance, but the employee doesn’t have to pay any separate premium for it.
If a PF employee unfortunately dies during their employment, their family receives financial assistance under the EDLI scheme. This amount can be up to a maximum of ₹7 lakh. For this entire facility, the employee does not have to fill out any forms or have any additional deductions from their salary.
How to get a ₹7 lakh benefit without any cost?
Many people are surprised to hear that such a large cover can be obtained completely free of charge. The EDLI scheme is already included in the EPFO system. As soon as an employee’s PF account is opened in a company and they come under the purview of EPFO, this security cover automatically becomes active.
The amount received under this scheme is determined based on the employee’s final PF balance and the prescribed rules. The government has set a maximum limit of ₹7 lakh to provide strong support to the family during difficult times.
Why is this scheme a relief for employees’ families?
Imagine what a family goes through if their sole earning member suddenly passes away. During such times, PF money, pension procedures, and other formalities take time. The EDLI scheme provides immediate financial relief to the family during that initial difficult period.
This money can be used for household expenses, children’s education, medical treatment, or any other essential needs. This is why EDLI is considered a lifeline for PF employees.
Which employees are eligible for EDLI benefits?
Any employee registered under EPFO and whose salary is subject to PF deductions automatically comes under the EDLI scheme. This includes most private sector employees. The only condition is that the employee’s death must have occurred during their employment and they must have been an active member of EPFO.
If the employee has changed jobs but their PF has been transferred and the account is active, the family usually faces no difficulty in receiving this benefit.
How to file a claim?
To avail of the EDLI scheme benefits, the employee’s family needs to file a claim with EPFO. The necessary documents include the death certificate, information related to the PF account, and identification of family members. This process is usually completed through the EPFO office or online portal. Many companies also assist the family in this process to save them from repeatedly visiting the office.
Why should every PF employee know about this?
It is often observed that people buy expensive insurance plans without realising that they already have a basic security cover. The EDLI scheme is one such unknown but extremely important benefit. If the employee and their family are aware of this, it will reduce panic during difficult times and allow them to take the right steps at the right time.
Disclaimer: This article is for general informational purposes only. The rules, benefit amounts, and procedures related to EDLI and EPFO may change from time to time. Always confirm with the official EPFO website or the relevant office before making any claims or financial decisions.
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