EPFO New Rules: PF Account Holders Get Rs 7 Lakh Insurance For Free; Rs 50,000 Payout In THIS Scenario; Check Interest Rate On EPF Savings

Provident Fund (PF) is a crucial savings tool for salaried employees, ensuring financial security during retirement and emergencies. It helps employees accumulate wealth over time while providing a backup fund for unexpected situations during their careers. 

EPFO has updated the Employee Deposit Linked Insurance (EDLI) scheme to offer insurance benefits to EPF members who pass away within a year of employment, ensuring their families receive financial support during difficult times. 

Employees changing jobs will continue to receive insurance coverage under the EDLI scheme, even if there’s a gap of up to two months between jobs. This ensures continuous financial protection for employees and their dependents.  

Earlier, families of employees who passed away within a year of joining were ineligible for insurance benefits. The revised rule now guarantees a Rs 50,000 payout, offering crucial financial assistance to families in such unfortunate circumstances. 

Under the updated EDLI scheme, the insurance payout for employees' families now ranges between Rs 2.5 lakh and Rs 7 lakh, strengthening financial security and providing greater monetary relief during unexpected events.  

The EDLI scheme revisions will benefit over 1,000 families annually by ensuring financial assistance in cases of in-service deaths. These changes enhance social security, helping grieving families cope with sudden financial hardships. 

EPFO has reduced the penalty on late Provident Fund (PF) deposits to just 1 per cent per month. This decision eases financial pressure on companies while ensuring timely contributions for employees' retirement savings and benefits.  

For the financial year 2024-25, EPFO has set the Employees' Provident Fund (EPF) interest rate at 8.25 per cent annually. This ensures better returns on employees' savings, helping them grow their retirement corpus effectively.