Employees’ Provident Fund Organisation (EPFO) recently issued a clarification regarding regulation of claims in reference to Employees’ Deposit Linked Insurance (EDLI) Scheme in settlement of claim cases.
The EPFO Circular dated 17 December 2025 mentioned that it come to notice that, in EDLI death claim cases, benefits under the EDLI Scheme, 1976 are being denied or settled for reduced amount due to interpretation of minor gaps as break in service, without due assessment of the actual continuity of employment in more than one spell of service rendered by the member prior to his death while in service.
EPFO mentioned an instance where, Saturday and Sunday immediately falling between date of exit from one establishment and joining in another establishment covered under EPF & MP Act, 1952 has been treated as break in service, whereas the member has rendered service of more than 12 months after adding the spells of services leading to denial of eligibility for EDLI benefits.
To this, the retirement fund body has clarified that vide Government of India Notification No. 299(E) dated 29.4.2021 the objective of continuous service was introduced. This has been further modified vide GSR No. 476(E) dated 18.7.2025 to remove anomalies relating to break in-service or non-contributory service that lead to denial of assurance benefits.
EPFO said, continuous spells of service immediately followed by Saturdays, Sundays or any declared weekly off in the last or present establishment, National holiday, Gazetted holiday, State holiday and Restricted holiday are to be treated as part of continuous service only, provided the date of exit from one establishment and date of joining in the next establishment covered under EPF & MP Act, 1952 are separated only by such offs/holidays.
In other words, the Saturdays, Sundays or any declared weekly off in the last or present establishment, National holiday, Gazetted holiday, State holiday and Restricted holiday shall not be treated as break in service and the service shall be treated as continuous.
EPFO has directed Regional PF Commissioners to ensure compliance of the above directions while processing EDLI claims. It has also asked the IS Division to take necessary action to incorporate requisite change in the EDLI module for processing of the EDLI claims by the Regional Offices.
