ESIC has increased funeral assistance for families of insured private-sector workers from ₹15,000 to ₹20,000, with the revised amount treated as effective from 8 May 2026 under a notification published in the official gazette on 16 October 2026.
The Employee State Insurance Corporation’s decision raises the support by ₹5,000 for funeral-related expenses after the death of an insured person. The assistance is available subject to the eligibility conditions and procedures applicable under the Employees’ State Insurance scheme and the relevant social security provisions.
According to the notification, the amendment has been made under Section 32(1)(f) of the Social Security Code, 2020, and Rule 21 of the Social Security (Central) Rules, 2026. The revised amount is therefore being applied retrospectively from 8 May 2026, even though the notification was published in October.
Under the reported provisions, the funeral assistance is generally paid to the eldest surviving member of the deceased insured person’s family. The payment is intended to help meet expenses that arise after a death, subject to the rules governing the benefit. Families covered by ESIC will need to follow the prescribed process to claim the assistance.
ESIC coverage generally applies to employees working in non-seasonal factories and establishments covered by the scheme. The report states that establishments with 10 or more employees are covered in most cases, while the threshold is 20 employees in some states. Employees earning monthly wages of up to ₹21,000 are ordinarily included within the mandatory coverage limit. For persons with disabilities, the reported wage ceiling is ₹25,000.
The scheme covers more than factories. Its reported coverage includes employees in shops, hotels, restaurants, cinemas, road transport undertakings, newspaper establishments, private educational institutions, private medical institutions and construction sites. There is no maximum or minimum age limit for coverage under the scheme, according to the information reported.
The benefit is significant for households that depend on formal-sector employment-linked social security. For such families, an employee’s death can create immediate funeral expenses alongside the loss of regular income. The revised assistance does not replace wider survivor benefits or other entitlements, but it increases the immediate support available through the ESIC system.
The All India NPS Employees Federation welcomed the increase. Its national president, Dr Manjeet Patel, said in a post on X that the assistance had been raised from ₹15,000 to ₹20,000 and that the official gazette treated the decision as effective from 8 May 2026. He also urged that the information be shared with workers so eligible families can claim the benefit when required.
The next step for families is to verify their eligibility and complete the claim process through the applicable ESIC channels. The revised assistance will be administered under the notification and the eligibility rules governing insured persons and their dependants.
