ESIC raises funeral expense benefit to ₹20,000 with retrospective effect

The Employees’ State Insurance Corporation has revised funeral expenses for insured workers’ families to ₹20,000, effective retrospectively from 8 May 2026.

The Employees’ State Insurance Corporation has fixed funeral expenses at ₹20,000 under Section 32(1)(f) of the Code on Social Security, 2020, according to a notification published in the Gazette of India. The change was issued on 7 October 2026, published on 16 October 2026 and made effective retrospectively from 8 May 2026. The notification also cites Rule 21 of the Social Security (Central) Rules, 2026, as the legal basis for the revised amount.

The move adds another small but practical layer to India’s social security framework for insured workers and their families. ESIC has repeatedly expanded its reach in recent years, including a 2016 decision to raise the wage ceiling for coverage from ₹15,000 to ₹21,000 a month, widening access to the scheme for more employees. That broader coverage push continued in 2019, when ESIC partnered with the Pradhan Mantri Jan Arogya Yojana to extend medical care to beneficiaries in 102 newly implemented districts.

For human resources and compliance teams, the notification is a reminder to update internal statutory references and benefit manuals to reflect the revised funeral expense amount. While the increase is modest, it formalises a payment that can help families meet immediate costs at a difficult time, and it underscores ESIC’s continuing role in providing social protection to workers across the country.

Disclaimer: This article is intended to inform and educate, not to recommend or endorse any financial product, investment or strategy. Please consider your own financial circumstances and seek professional advice where appropriate before making financial decisions.