Employees’ Provident Fund Organisation (EPFO) has announced a significant increase in the ex-gratia amount provided under its Death Relief Fund.
Effective April 1, 2025, the ex-gratia benefit for Central Board employees who die while in service has been raised from ₹8.8 lakh to ₹15 lakh.
The amount will be disbursed to the nominee or legal heirs of the deceased employee and will be paid from EPFO’s Staff Welfare Fund.
This enhancement was formally approved by the Central Provident Fund Commissioner and President of the Central Staff Welfare Committee, as per a circular dated August 19, 2025.
The move is aimed at strengthening the financial safety net for families of EPFO employees and reflects the organization’s commitment to employee welfare.
EPFO Death Relief Fund Annual Increment of 5% from April 2026
In addition to the immediate hike, EPFO has introduced a provision for annual escalation of the ex-gratia amount.
Starting April 1, 2026, the benefit will increase by 5% every year.
This adjustment is intended to keep pace with inflation and rising living costs, ensuring that the financial support remains meaningful over time.
The revised policy marks a proactive step by EPFO in aligning its welfare benefits with broader economic realities.
It also sets a precedent for other government and semi-government bodies to consider inflation-linked revisions in employee welfare schemes.
Eligibility and Disbursement Details
The enhanced ex-gratia amount applies only to employees of the Central Board of EPFO. It is granted when an employee passes away while still in active service.
The benefit will be extended to their family members, including nominees or legal heirs, and will be processed through the Staff Welfare Fund.
This fund is managed internally by EPFO and is separate from the regular Provident Fund corpus.
It is designed to support welfare initiatives for employees. These include financial relief in cases of death, medical emergencies, and other unforeseen situations.
EPFO Complementary Reforms for Subscriber Convenience
The announcement was made in the context of broader reforms introduced by EPFO in 2025. These reforms aim to simplify procedures for subscribers and their families.
Notable changes include:
- Simplified death claim process: Guardianship certificates are no longer required for settling claims in the bank accounts of minor children.
- Streamlined joint declaration process: Members who need to link or correct Aadhaar details with their Universal Account Number (UAN) can now do so more easily.
These reforms aim to reduce procedural delays and improve access to benefits, especially during critical times.
EPFO’s Expanding Role in Workforce Security
The Central Board of Trustees, EPFO’s highest policy-making body, comprises representatives from the central and state governments, employers, and employees.
The recent hike in ex-gratia benefits highlights the Board’s evolving commitment to employee welfare.
It also shows how responsive the organization is to the shifting socio-economic landscape.
EPFO’s provisional payroll data for June 2025 indicates strong job growth, with 2.18 million net formal jobs added during the month.
This marks the highest monthly increase since the organization began tracking payroll data in April 2018.
This growth underscores EPFO’s expanding role in formal workforce coverage and social security delivery.
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