Good news for the families of employees working in the private sector and covered by the Employees' State Insurance Corporation (ESIC) insurance scheme. The family will now receive financial assistance of 20,000 rupees for funeral expenses in case of an employee's death. Previously, this amount was 15,000 rupees, which means an increase in aid by 5,000 rupees.
ESIC has issued a corresponding notification. According to this document, the increased support amount will be effective from May 8, 2026. This decision will provide financial support to families whose members worked in private capacities and were insured through ESIC, and who passed away while at work.
The Employees' State Insurance Corporation released a notification regarding the increase in the funeral allowance in October 2026. This notification was published in the official government gazette on October 16, 2026. As part of this change, the amount paid for funerals was raised from 15,000 rupees to 20,000 rupees.
According to the notification, this amendment was made in accordance with Section 32(1)(f) of the Social Security Code 2020 and Rule 21 of the Central Social Security Rules 2026. The increased amount is considered effective from May 8, 2026. In a difficult time when numerous unforeseen expenses related to a family member's funeral arise, this financial support can provide some relief to the family.
This assistance, provided under ESIC, is intended to cover expenses related to funerals after the death of an insured person. To receive this benefit, one must comply with the relevant rules and eligibility conditions. According to the provisions of the Social Security Code, in normal circumstances, this amount is transferred to the eldest surviving member of the deceased insured person's family. Therefore, it is crucial that the families of employees covered under ESIC are aware of this support and its associated rules.
The Employees' State Insurance Corporation (ESIC) covers all employees who work in any non-seasonal factory or establishment employing 10 or more workers. In some states, this threshold is 20 workers. Non-seasonal factories are industrial units that do not depend on a specific season or weather and operate continuously throughout all 12 months of the year.
Employees working in such factories whose monthly salary is 21,000 rupees or less are mandatorily covered under this scheme. For Persons with Disabilities, this threshold salary is 25,000 rupees. There is no upper or lower age limit for participation in this program. Besides factories, this category also includes employees working in shops, hotels, restaurants, cinemas, public transport enterprises, newspaper publishing houses, private educational and medical institutions, as well as construction sites.
All India NPS Employees Federation welcomed ESIC's decision to increase the funeral allowance. The national president of the organization, Dr. Manjeet Patel, wrote on social media platform X that the amount paid for funerals has been increased from 15,000 rupees to 20,000 rupees. He stated that according to the official gazette of the Government of India, this decision will come into effect from May 8, 2026. He also urged spreading this information among employees so that affected families can avail this help if needed.