ESIC has notified ₹20,000 as the funeral expense payable on the death of an insured person, with effect from 8 May 2026. It is paid to the eldest surviving family member, or to whoever paid for the funeral.
The Employees' State Insurance Corporation (ESIC) has fixed the amount payable towards funeral expenses on the death of an insured person at ₹20,000.
- Notified: 7 October 2026, published in the Gazette on 16 October 2026
- Effective from: 8 May 2026 (retrospectively)
- Law: Section 32(1)(f) of the Code on Social Security, 2020, read with Rule 21 of the Social Security (Central) Rules, 2026
Who receives it
The amount is paid to the eldest surviving member of the family of the insured person. If the person had no family, or was not living with the family at the time of death, it is paid to whoever actually paid for the funeral.
What employers should do
- Tell your HR team about the new amount.
- Check whether any claims since 8 May 2026 need to be revisited.
- Keep ESIC registrations and monthly contributions up to date, so employees and their families can claim benefits without delay.
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Source: SCC Online, 19 October 2026. Dates and details can change when the government issues formal notifications; please confirm before acting or talk to our experts.
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