ESIC Funeral Expenses Revised to ₹20,000
Comprehensive Statutory Guide, Gazette Notification Details, Eligibility Criteria, Claim Process & Practical FAQs
1. Official Notification Summary
↑ TopThe Central Government and the Employees’ State Insurance Corporation (ESIC) have officially published the notification enhancing the quantum of funeral expenses under the new labour code framework. Key provisions of the notification include:
Prior to this notification, the funeral expenses benefit under the ESI framework was ₹15,000 (which was revised from ₹10,000 in March 2019). The enhancement to ₹20,000 accounts for current inflation and ensures dignified funeral support for the families of insured workers across India.
2. Statutory Details & Key Parameters
↑ Top| Parameter | Statutory Specification |
|---|---|
| Issuing Authority | Employees’ State Insurance Corporation (ESIC), Ministry of Labour & Employment, GoI |
| Statutory Benefit | Funeral Expenses under ESI Scheme |
| Revised Amount | ₹20,000 (Rupees Twenty Thousand only) |
| Pre-revised Amount | ₹15,000 (effective from 01.03.2019) |
| Effective Date | 8 May 2026 |
| Notification Number | N-12011/1/2023-P&D |
| Notification Date | 7 October 2026 |
| Gazette Publication Date | 16 October 2026 |
| Gazette Reference | The Gazette of India (Extraordinary), Part III, Section 4, Notification No. 633 |
| Enabling Statutory Section | Section 32(1)(f) of the Code on Social Security, 2020 |
| Applicable Rule | Rule 21 of the Social Security (Central) Rules, 2026 |
| Prescribed Claim Form | ESIC Form 22 (Claim for Funeral Expenses) |
3. Eligibility Criteria & Claim Process
↑ TopThe funeral benefit is payable on the unfortunate death of an Insured Person (IP). Understanding the eligibility rules and documentation ensures prompt settlement through Direct Benefit Transfer (DBT):
The payment is made to the eldest surviving member of the deceased IP's family. If the deceased had no family or was living away, it is paid to the person who actually incurred the funeral expenses.
Duly filled Form 22, original/attested Death Certificate, claimant's ID proof (Aadhaar), bank passbook copy/cancelled cheque, and employer's declaration (if submitted via branch).
The claim must normally be filed within 3 months from the date of demise. Time relaxation up to 2 years can be sanctioned by the competent ESIC authority on reasonable cause.
Once verified by the ESIC Branch Office or online portal, the sanctioned amount of ₹20,000 is directly credited to the claimant's verified bank account.
4. Frequently Asked Questions (FAQs) 8 Q&As
↑ Top1. What is the revised funeral expenses amount under ESIC?
The revised funeral expense amount is ₹20,000 (Rupees Twenty Thousand only). It was previously ₹15,000 (which had been in force since 1 March 2019).
2. What is the effective date of the enhanced ₹20,000 funeral benefit?
As per ESIC Notification No. N-12011/1/2023-P&D published in the Gazette of India on 16 October 2026, the revised amount of ₹20,000 is effective from 8 May 2026. All qualifying deaths occurring on or after 8 May 2026 are entitled to the revised amount.
3. Who is entitled to receive the funeral expenses payment?
Under Section 32(1)(f) of the Code on Social Security, 2020:
- The amount is primarily payable to the eldest surviving member of the deceased Insured Person's family.
- If the Insured Person did not have a family, or was not living with his family at the time of death, the payment is made to the person who actually incurs the expenditure on the funeral rites.
4. Does funeral benefit apply only if death occurs due to an employment injury?
No. Funeral expenses under ESIC are payable upon the death of an Insured Person from any cause, including natural death, illness, or occupational accident. It is an unconditional social security benefit meant to assist during bereavement.
5. Is there any minimum contribution period required for funeral benefit?
No minimum contribution period is required. The deceased individual must only have been an Insured Person under the ESI Act / Code on Social Security at the time of death. Even if an employee passed away within a few days of joining insurable employment, the funeral expenses claim is valid.
6. Which statutory form must be submitted to claim funeral expenses?
The claimant must submit ESIC Form 22 (Claim for Funeral Expenses) along with:
- Original or attested copy of the Death Certificate issued by the competent civic registrar / local authority.
- If claimant is not a family member: Receipt / bills / declaration confirming funeral expenses incurred.
- Copy of claimant's Aadhaar or identity document.
- Bank account details (cancelled cheque or passbook copy) for direct credit of the amount.
7. What is the deadline to submit the funeral expenses claim?
The claim should ordinarily be filed within 3 months from the date of death of the Insured Person. If delayed due to genuine reasons, the ESIC Branch Manager or Regional Director has discretionary powers to condone delay up to 2 years upon submission of a reasonable explanation.
8. What steps should HR and employers take regarding this notification?
HR and statutory compliance teams should:
- Update internal compliance handbooks, employee onboarding materials, and welfare benefit summaries.
- Ensure that deceased employees' families are promptly guided to submit Form 22 with the nearest ESIC Branch Office.
- Verify that pending claims relating to deaths on or after 8 May 2026 are settled at the revised ₹20,000 ceiling.
5. Official Gazette Notification & Resources
↑ TopView the official Gazette of India Extraordinary publication containing the ESIC notification below:
Official Reference & Statutory Disclaimer
Primary Source: The Gazette of India (Extraordinary), Part III, Section 4, Notification No. 633, dated 16 October 2026, issued under File No. N-12011/1/2023-P&D by Employees' State Insurance Corporation (ESIC), Ministry of Labour & Employment, New Delhi.
Official ESIC and Ministry Portals: https://www.esic.gov.in | https://labour.gov.in
Disclaimer: This article is published for educational and statutory awareness purposes for HR professionals, payroll executives, and employees. While every effort has been made to ensure statutory accuracy, readers should refer to the official Gazette notification and consult the jurisdictional ESIC Branch Office for claim adjudications.