What can a nominee claim after the death of a working member? It's not just PF; there are other things on the list.

The sudden death of a working member affects the entire family. In such times, the nominee can claim many things besides PF. See the complete checklist here.

If the breadwinner of a family suddenly dies while employed, it brings grief and worry to the family. Financial security is a great relief in such difficult times. Therefore, it is important to know what benefits a nominee or legal heir receives upon the death of a working person. Many people think that in such circumstances, a claim can only be made for PF, but in reality, there are many other things for which a nominee can claim. Learn more about it here:

Outstanding Salary & Bonus

The employee's family is entitled to the entire salary for the days they worked before their death. If the employee received a bonus, performance incentive, or annual bonus from the company, that is also paid to the nominee.

Full PF Balance (EPF Claim)

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

How to Claim?

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

Gratuity Benefit

If an employee dies while in service, the nominee receives the gratuity amount. Gratuity is calculated based on the employee's last salary and length of service. The formula is: (last salary x 15/26 x years of service). The company may pay a higher amount, but the maximum gratuity allowed under the law is ₹20 lakh.

EDLI Insurance (Employee Deposit Linked Insurance)

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

If an employee dies while in service, their nominee receives the benefit of this insurance. The minimum insurance amount under this scheme is ₹2.5 lakh and the maximum is ₹7 lakh. The employee's salary for the last 12 months is used to determine the amount. EDLI insurance can be claimed along with the PF claim through the same 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 - Lifetime
Children - Up to 25 years
Disabled children - Lifetime
Unmarried employees - Parents

FAQs

Q1. If there is no nominee, who will receive the money?

If there is no nominee, the legal heir can file a claim with a Succession Certificate.

Q2. When is the claim processed?

If all documents are in order, PF and EDLI claims are generally processed within 20–30 days. The company is required to disburse gratuity within 30 days.

Q3. Is there any tax to be paid on this money?

No, PF, gratuity, and EDLI insurance amounts are tax-free.

Q4. What if the company refuses to pay?

A complaint can be filed with the Labor Commissioner, the EPFO ​​complaint system, or the court.