EPFO has decided to simplify the rules for EDLI. This will directly benefit the families of employees whose death claims were rejected due to taking a short break while changing jobs.

EPFO's big decision: Insurance claims will not be deducted during weekend breaks, a relief for employees.

EPFO EDLI Rules Change: The Employees' Provident Fund Organization (EPFO) has decided to simplify the rules of the Employees' Deposit Linked Insurance Scheme (EDLI). This will directly benefit the families of employees whose death claims were previously rejected due to taking a short break while changing jobs.

EPFO has attempted to alleviate this problem through a circular issued in December 2025. This could prove to be a historic step in the interest of employees. Let's find out what important changes have been made by EPFO. 

There will be no service break due to the weekends.

A major problem with the previous rules was that if an employee left their old job on a Friday and joined a new company on a Monday, the intervening Saturday and Sunday were considered a break in service. This technical break in service was detrimental to the employee's family.

Continuous service was once a requirement for benefits like EDLI. However, the EPFO ​​has now resolved this confusion in its new rules. The EPFO ​​has clearly stated that weekly holidays that occur during a job change will not be considered a service break.

Weekly holidays, national holidays, and state government-declared holidays will also be included in this policy. This means that the employee's service will be considered continuous. Furthermore, the family will not be deprived of benefits such as insurance or a pension.

Minimum guarantee of Rs 50,000 will be given.

In a circular issued by the EPFO, it has also been decided to increase the minimum payout under the EDLI scheme to ₹50,000. Even employees with an average PF balance of less than ₹50,000 will receive a minimum insurance amount of ₹50,000 for their families.