Benefit of Rs 50,000 will be paid, big news for EPFO members
Benefit of Rs 50,000 will be paid, big news for EPFO members

The Employees’ Provident Fund Organization (EPFO) has rolled out some significant updates to the Employees’ Deposit Linked Insurance (EDLI) scheme. These changes were greenlit during the 237th meeting of the Central Board of Trustees (CBT), which was led by Union Labor Minister Mansukh Mandaviya.

So, what’s new?

The ministry announced that the CBT has approved a minimum death benefit for those who pass away within their first year of service. If an EPF member dies before completing a year of continuous service, their beneficiaries will receive a minimum life insurance payout of Rs 50,000.

Coverage even without contributions

Additionally, the CBT has approved benefits for members who die while still in service but after a period without contributions. Previously, if a member was considered out of service, they wouldn’t qualify for EDLI benefits. Now, if a member dies within six months of their last contribution and their name is still on the rolls, they will be eligible for EDLI benefits. This change is expected to help over 14,000 cases of such deaths annually.

Support even with job gaps

The CBT has also given the green light to a proposal that allows for service continuity under the scheme. Previously, if there was a gap of just one or two days (like weekends or holidays) between jobs, members would be denied the minimum EDLI benefit of Rs 2.5 lakh and a maximum of Rs 7 lakh because they hadn’t met the one-year continuous service requirement.

With the new changes, a break of up to two months between jobs will now count as continuous service, making people eligible for EDLI benefits. This update is likely to help over 1,000 families dealing with service-related deaths each year. Plus, it’s projected that these amendments will lead to more than 20,000 cases of service-related deaths receiving increased benefits under EDLI annually.

The Employees’ Provident Fund (EPF) withdrawal process has become significantly streamlined, especially with the online options. Here’s a breakdown of the general steps, keeping in mind that the EPFO is also working towards incorporating UPI based withdrawals.

Key Requirements Before Starting:

Online EPF Withdrawal Process:

  1. Log in to the EPFO Portal:
    • Visit the official EPFO member e-SEWA portal.
    • Log in using your UAN and password.
  2. Verify KYC Details:
    • Ensure all your KYC details (Aadhaar, PAN, and bank account) are verified under the “Manage” tab.
  3. Go to Online Services:
    • Click on the “Online Services” tab.
    • Select “Claim (Form-31, 19, 10C & 10D)” from the drop-down menu.
  4. Verify Bank Account:
    • Enter your bank account number and click “Verify.
    • Click “Yes” to confirm the undertaking certificate.
  5. Proceed for Online Claim:
    • Click on “Proceed for Online Claim.”
  6. Select Withdrawal Type:
    • Choose the appropriate type of withdrawal (e.g., PF Advance (Form 31), full withdrawal).
    • Provide the reason for the withdrawal and the required amount.
  7. Submit the Claim:
  8. Track Claim Status:

Important Considerations:

  • Withdrawal Conditions: EPF withdrawals are subject to specific conditions, such as retirement, unemployment, or certain emergencies.
  • UPI integration: The EPFO is in the process of implementing UPI based withdrawels, which would greatly speed up fund transfers. When this is fully implemented, the process will change somewhat.
  • Forms: The forms mentioned (Form-31, 19, 10C, and 10D) are used for various types of withdrawals and pension claims.

It’s always recommended to refer to the official EPFO website for the most up-to-date information and guidelines.