The Labour Ministry-run Employees’ Provident Fund Organisation (EPFO) which manages the provident fund of 5 crore workers has expanded death benefits for its insurance subscribers.

The retirement fund body in a notification said it increased the minimum insurance cover to Rs 2.5 lakh from Rs 2 lakh earlier and the maximum limit has been increased to Rs 7 lakh from the existing Rs 6 lakh.

The EPFO notification comes after Labour Ministry urged it to hike the minimum sum assured payable under the Employees’ Deposit Linked Insurance (EDLI) Scheme, 1976 to Rs 7 lakh from Rs 6 lakh.

The decision to hike the maximum sum assured under ELDI Scheme to Rs 7 lakh at its virtual meeting on September 9, 2020 by EPFO’s Central Board of Trustees (CBT) headed by Labour Minister Santosh Gangwar.

The ministry notified the implementation of an increased minimum sum assured ceiling to Rs 2.5 lakh on February 15, 2018 for a period of two years which expired on February 15, 2020. 

“The following proviso shall be inserted and shall be deemed to have been inserted with effect from the 15 February 2020…provided that the assurance benefit shall not be less than two lakh and fifty thousand rupees,” a gazette notification said.

This essentially means that the minimum sum assured under the EDLI scheme will be retrospectively applicable from February

Gangwar said the Ministry of Labour and Employment issued a notification on Wednesday, April 28, to implement the decision to hike the maximum sum assured payable under the EDLI scheme.

In case of death of active EPFO subscribers, the families will get death benefit under the scheme. There are over 2 million subscribers of ELDI scheme which are covered under it. Notably, all ELDI subscribers are EPF subscribers but the reverse is not true.