Losing a family member who was the only earning person is extremely painful. Along with emotional stress, the family also faces financial problems. In such a situation, it is very important to know what benefits the employee’s nominee or family can claim after death.
Most people think only about PF money, but several other benefits can help the family financially. Here is a simple explanation of all EPFO benefits available to a nominee.
Pending Salary, Bonus, and Leave Encashment
After the employee’s death, the company must pay the salary for the days the employee worked before passing away.
Apart from salary, any pending bonus, annual bonus, or performance incentive is also paid to the nominee or legal heir. Many companies also pay money for unused leave, which is called leave encashment. This amount is added to the final settlement and given to the family.
Full EPF Amount With Interest
The nominee can claim the full EPF balance of the employee. This includes the employee’s contribution, the employer’s contribution, and interest earned on it.
If the nominee’s name is already registered in the EPF account, the claim can be filed online through the EPFO portal. For offline claims, the Composite Claim Form (Death) must be filled out and submitted after employer verification.
If no nominee is registered, legal heirs can claim the PF money by submitting a Succession Certificate.
Gratuity Benefit After Death
Gratuity is another major benefit given when an employee dies during service. In such cases, the rule of completing five years of service does not apply.
Gratuity is calculated based on the employee’s last drawn salary and total years of service using this formula:
Last salary × 15/26 × number of years of service
As per law, the maximum gratuity amount is ₹20 lakh, though some companies may offer more.
EDLI Insurance Benefit From EPFO
EDLI (Employee Deposit Linked Insurance) is a free life insurance cover linked with EPF. The employee does not pay any premium for this insurance. The employer pays the full cost.
If the employee dies while in service, the nominee can get insurance money ranging from ₹2.5 lakh to ₹7 lakh. The amount depends on the employee’s average salary for the last 12 months.
The EDLI claim can be filed along with the PF claim through the same process.
Family Pension Under EPS Scheme
EPFO also provides a monthly family pension under the Employees’ Pension Scheme (EPS). If the employee completed at least 10 years of service and was an EPS member, the family is eligible for a pension.
- The spouse gets a pension for life
- Children receive a pension till the age of 25
- Disabled children get a pension for life
- If the employee was unmarried, their parents can claim the pension
Why These EPFO Benefits Are Important
Knowing about these benefits helps families take quick action during a very difficult time. EPFO and employer-related benefits can provide strong financial support and help families manage expenses after losing a loved one.
Being aware of these rights ensures that no benefit goes unclaimed when it is needed the most.
