EPFO Hikes Death Relief Ex-Gratia To Rs 15 Lakh For Employees' Families: Who Is Eligible?

The Employees’ Provident Fund Organisation has increased the ex-gratia amount under the ‘Death Relief Fund’ to Rs 15 lakh for families of eligible employees. This enhanced amount, up from the earlier Rs 8.8 lakh, will be effective April 1, 2025.

The benefit applies to employees of the Central Board who die while in service. The amount will be paid to the nominee or legal heir, in accordance with the EPFO rules. It will be disbursed from the Staff Welfare Fund and is aimed at improving financial support for affected families.

In a circular dated Aug. 19, EPFO said, “…the undersigned is directed to convey the approval of the Central Provident Fund Commissioner/ President, Central Staff Welfare Committee, Employees’ Provident Fund Organisation, for enhancement of the ex-gratia amount under Death Relief Fund from Rs 8.8 Lakh to Rs 15 Lakh. The ex-gratia amount of Rs 15 Lakh (Rs Fifteen Lakh only) shall be paid to the family members (nominee or legal heirs) of the deceased employee of the Central Board, from the Staff Welfare Fund.”

The EPFO has also announced that the ex-gratia amount will be hiked by 5% every year starting April 1, 2026. The move is aimed at matching inflation and helping families cope with increasing financial needs over time. The move is part of EPFO’s 2025 policy updates, which have seen several reforms.

The Central Board of Trustees is EPFO’s top policy-making body. It includes members from the Central and state governments, as well as representatives of employers and employees.

In 2025, EPFO also announced several measures to improve services. These include simplifying the death claim process by removing the need for a ‘Guardianship Certificate’ for minor children. The joint declaration process has also been made easier for members needing Aadhaar-UAN linking or corrections.

EPFO’s other reforms include an easier housing loan withdrawal process from provident fund, changes in the auto-settlement limit for advance claims, among other things.