PF Holder’s Death Benefit Increased to ₹15 Lakh from April 2025 – Know Full Details

In a significant move to provide stronger financial security to employees’ families, the Employees’ Provident Fund Organisation (EPFO) has revised the death relief benefit for PF account holders. Starting April 1, 2025, the death compensation has been substantially increased from ₹8.8 lakh to ₹15 lakh. This step ensures that the dependents of employees get better support during unforeseen circumstances.

Death Relief Benefit Raised from ₹8.8 Lakh to ₹15 Lakh

Earlier, the maximum financial assistance offered by EPFO under the death relief scheme was ₹8.8 lakh. With the new revision, this has been raised to ₹15 lakh, giving families a bigger safety net. The amount will be directly transferred to the nominee or legal heir of the deceased employee through the Staff Welfare Fund.

Annual Increment of 5% from 2026

EPFO has also announced that from April 1, 2026, the death relief amount will increase by 5% every year. This progressive rise is designed to counter inflation and ensure sustained financial help for the family over the long term.

Simplified Claim Process for Families

One of the key highlights of this reform is the simplification of the claim settlement process. Families will no longer face the lengthy and complicated procedures that previously delayed settlements. EPFO has streamlined the mechanism, ensuring faster disbursal of claims.

For cases involving minor children, families will now receive the money without the requirement of a guardianship certificate, saving them both time and unnecessary legal hurdles.

How Employer’s Contribution is Utilized

The employer’s contribution to an employee’s PF account is divided into three parts:

• 3.67% goes to the Provident Fund (EPF)

• 8.33% is directed to the Employees’ Pension Scheme (EPS)

• The remaining portion contributes to the insurance component

This structured contribution ensures that employees not only secure their retirement corpus but also extend a financial shield to their dependents in case of untimely demise.

Relief for Retirement and Beyond

Provident Fund savings play a vital role in helping employees manage their post-retirement life. With the increase in death relief benefits, the scheme now also guarantees extended financial assistance to families, reducing the burden during difficult times.

✅ Key Takeaways

• Death relief benefit raised to ₹15 lakh from April 1, 2025.

• Annual 5% hike in compensation starting April 1, 2026.

• Simplified claim process ensures faster settlement.

• No guardianship certificate required for minor beneficiaries.

• Employer contributions continue to support PF, pension, and insurance schemes.

With these changes, EPFO has not only enhanced the financial safety net for families of employees but also strengthened trust in India’s largest retirement savings scheme.