ESIC has increased the social security amount for employees; they will now receive an additional Rs 5,000 under this head..

The government has increased the financial assistance provided to employees covered under the Employees' State Insurance Corporation (ESIC) and their families. The funeral expense assistance, granted in the event of an employee's death, has been raised from ₹15,000 to ₹20,000—an increase of ₹5,000 for eligible employees.

According to a notification issued by the Ministry of Labour and Employment, the revised amount will be effective from May 8, 2026. The notification was recently published in the Gazette of India this October, citing provisions from the Code on Social Security, 2020, and the Social Security (Central) Rules, 2026.

ESIC Funeral Expenses: Assistance Increased by 33%
Under the new arrangement, the funeral expense assistance has been increased by approximately 33.3%. Previously, ₹15,000 was provided; this has now been raised by ₹5,000, bringing the total to ₹20,000.

This assistance is intended to provide financial support to the family of an insured employee to help cover funeral-related expenses, as families often face various costs during such difficult times. This increase will provide additional financial relief to eligible beneficiaries.

Notification Issued by the Ministry of Labour
The Ministry of Labour and Employment issued a notification regarding this on October 7, 2026. As per the notification, the revised amount will come into effect on May 8, 2026.

AINPSEF Welcomes the Decision
The All India NPS Employees Federation (AINPSEF) has welcomed the decision to increase the funeral expense assistance. Manjeet Singh Patel, the National President of the Federation, described it as a positive step toward employee welfare and social security. The Federation has appealed to its members and other relevant stakeholders to disseminate information regarding the enhanced assistance to employees, ensuring that eligible families understand the procedure to avail of this benefit should the need arise.

The funeral assistance provided under the ESIC scheme is intended to offer financial support toward funeral expenses following the death of an insured employee.

Disclaimer: This content has been sourced and edited from NDTV India. While we have made modifications for clarity and presentation, the original content belongs to its respective authors and website. We do not claim ownership of the content