The Employee State Insurance Corporation (ESIC) has increased its funeral benefit for insured workers from ₹15,000 to ₹20,000, with the revised assistance deemed effective from 8 May 2026, according to a notification published in the official Gazette on 16 October.
The benefit is available after the death of an insured person covered under the ESIC scheme and is intended to help meet funeral-related expenses. The change was notified in October 2026 under Section 32(1)(f) of the Social Security Code, 2020, and Rule 21 of the Social Security (Central) Rules, 2026.
Under the revised provision, the funeral assistance is generally paid to the eldest surviving member of the deceased insured person’s family, subject to the applicable rules and eligibility conditions. The notification provides for an increase of ₹5,000 over the earlier amount.
ESIC coverage generally applies to employees working in non-seasonal factories and establishments that meet the prescribed employee threshold. The source report states that establishments with 10 or more employees are covered in most cases, while the threshold is 20 employees in some states. Workers whose monthly wages are ₹21,000 or less are ordinarily included under the mandatory coverage limit. For persons with disabilities, the reported wage ceiling is ₹25,000.
The scheme covers eligible workers in a range of establishments beyond factories, including shops, hotels, restaurants, cinemas, road transport undertakings, newspaper establishments, private educational institutions, private medical institutions and construction sites. The source report also states that the scheme does not prescribe a maximum or minimum age limit for coverage.
The revised benefit is relevant to families of insured workers because funeral expenses can arise immediately after a death, while access to other employment-linked or social-security benefits may involve separate procedures. The assistance itself remains subject to ESIC rules, including the requirement that the deceased person was an insured individual covered by the scheme at the relevant time.
The All India NPS Employees Federation welcomed the increase. Its national president, Dr Manjeet Patel, said in a post on X that the benefit had been raised from ₹15,000 to ₹20,000 and that the Gazette had made the change effective from 8 May 2026. He also called for the information to reach employees and families who may need to claim the assistance.
The latest notification places the revised amount within the framework of the Social Security Code and the 2026 Central Rules. Families seeking the benefit will need to follow the applicable ESIC process and meet the scheme’s eligibility requirements.
