The Employees Provident Fund Organization (EPFO) is going to give a big gift to its more than 6 crore shareholders. In the recent meeting of the EPFO Central Board of Trustees, it has been agreed to increase the insurance amount of EPF account holders by Rs 1 lakh. That is, the amount that is currently 6 lakh rupees will increase to 7 lakh rupees. On the death of any EPF account holder, his family gets this amount. This insurance amount is decided on the basis of salary for the last 12 months. For this, the Linked Insurance Scheme, 1976 (EDLI) is being amended and notification will be issued as soon as the approval of the Finance Ministry.
Compulsory insurance cover is provided to all EPF account holders under the EDLI scheme. In the event of death of the account holder due to natural, illness or accident, the nominee is paid a lump sum of this amount. All organizations under the EPF and Miscellaneous Provisions Act, 1952 (EPF and Miscellaneous Provisions Act, 1952) are nominated for EDLI.
Both the employer and the central government contribute to the EDLI scheme. The employee is not required to contribute to the Linked Insurance Scheme. The claim amount under this scheme is 30 times the average monthly salary in the last 12 months, which is a maximum of 7 lakhs.