Nominee: What can a nominee claim after the death of an employed person? know..

If the earning member of a family suddenly dies during their employment, the family is faced with both grief and financial worries. In such difficult times, financial security provides immense relief. Therefore, it's important to know what benefits a nominee or legal heir is entitled to upon the death of an employee person. Many people think that only a PF claim can be made in such situations, while in reality, there are several other benefits that nominees can claim.

Here's what you need to know:

Outstanding Salary and Bonus

The family is entitled to the full salary for the days the employee worked before their death. If the company provided bonuses, performance incentives, or annual bonuses, these are also given to the nominee.

Full PF Balance (EPF Claim)

After the employee's death, the entire amount deposited in their EPF account (both the employee's and the company's contributions), along with interest, is given to their nominee.

How to Claim?
If the nominee's name is updated in the EPF account, they can claim online through the EPFO ​​portal. For offline claims, the 'Composite Claim Form (Death)' needs to be filled out, verified by the employer, and submitted to the PF office. If there is no nominee, the legal heir can claim with a 'Succession Certificate'.

Gratuity Benefit
If an employee dies during their employment, the nominee receives the gratuity amount. Gratuity is calculated based on the employee's last drawn salary and their length of service. The formula is: (Last drawn salary x 15/26 x Years of service). The company may choose to pay more, but legally, the maximum gratuity payable is Rs. 20 lakhs.

EDLI Insurance (Employee Deposit Linked Insurance)
Every EPF member receives free life insurance cover under the EDLI (Employee Deposit Linked Insurance) scheme. The employee does not have to pay any premium for this, as the entire cost is borne by the employer.

If the employee dies during their employment, their nominee receives the benefit of this insurance. Under this scheme, the insurance amount can range from a minimum of ₹2.5 lakh to a maximum of ₹7 lakh. The amount is determined based on the employee's salary for the previous 12 months. The EDLI insurance amount can be claimed along with the PF claim in a single process.

Family Pension (Family Pension Under EPS)
If the employee has worked for at least 10 years, the family receives a pension.

Who will receive the pension?
Spouse - for life
Children - until age 25
Disabled children - for life
Unmarried employee - Parents

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