The Employees’ Provident Fund Organisation (EPFO) has increased the ex-gratia payment for nominees or legal heirs of employees who die in service from Rs 8.8 lakh to Rs 15 lakh under its Death Relief Fund.
Starting April 2026, the ex-gratia amount will see a 5% annual increase, linking the benefit to inflation for the first time. This move aims to ensure that monetary assistance for dependents or heirs keeps pace with rising living costs.
The payout will come from the Staff Welfare Fund, providing greater financial security to families of employees under the Central Board.
EPFO has also introduced procedural changes to simplify and speed up settlements. Guardianship certificates are no longer required for death claims, allowing funds to be directly credited to the bank accounts of minor children. Additionally, the joint declaration process has been simplified to make linking or correcting Aadhaar details with Universal Account Numbers (UAN) faster and more straightforward.
These updates, part of broader reforms in 2025, are designed to make EPFO services more efficient while ensuring families receive timely financial support.
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