The ex-gratia payment made to the nominees or legal heirs of employees who die in service was Rs 8.80 lakhs. Now, the Employees’ Provident Fund Organisation (EPFO) has increased this amount under its Death Relief Fund, to Rs 15 lakhs.
Starting April 2026, there will be a five per cent increase in the ex-gratia amount annually. This is because, for the first time, the death relief amount is being linked to inflation. The objective is to ensure that the monetary assistance offered to dependents / heirs of employees increases with the rise in costs.
The benefit will be paid out from the Staff Welfare Fund. As per the EPFO, this increment is meant to provide greater financial security to families of employees of the Central Board.
With an aim to simplify and speed up procedures, and ensure faster service, Guardianship certificates are no longer required for the settlement of death claims. The funds are released into the bank accounts of minors, simplifying the settlement process.
The year 2025 has also seen several procedural changes aimed at making EPFO services simpler and faster. For instance, guardianship certificates are no longer needed to release funds into the bank accounts of minor children. Additionally, the EPFO has also simplified the joint declaration process, making it simpler to link or correct Aadhaar details with Universal Account Numbers (UAN).