ESIC Funeral Expenses Increased from ₹15,000 to ₹20,000

ESIC Revises Funeral Expenses Benefit from ₹15,000 to ₹20,000

The Employees’ State Insurance Corporation (ESIC) has issued a notification revising the funeral expenses benefit from ₹15,000 to ₹20,000, representing an increase of ₹5,000. The revised amount is effective from 8 May 2026, as specified in the official notification.

Key Details of the ESIC Notification

The Employees’ State Insurance Corporation (ESIC) has issued Notification No. N-12011/1/2023-P&D, dated 7 October 2026, revising the funeral expenses benefit from ₹15,000 to ₹20,000, an increase of ₹5,000. The notification was published in the Gazette of India, Extraordinary, Part III—Section 4, on 16 October 2026, under Gazette Reference CG-DL-E-17102026-277269. Issued under Rule 21 of the Social Security (Central) Rules, 2026, read with Section 32(1)(f) of the Code on Social Security, 2020, the revised benefit is effective retrospectively from 8 May 2026.

What Does the Revision Mean for Employers and HR Teams?

Although the notification was issued in October 2026, the revised benefit applies retrospectively from 8 May 2026. Employers, HR professionals and compliance consultants should review relevant funeral expense claims relating to this period and guide eligible claimants on the applicable benefit.

Where a claim has already been settled at the earlier rate of ₹15,000, the claimant may approach the concerned ESIC Branch Office to seek clarification regarding any additional payment. The notification does not separately specify the procedure for reopening settled claims or disbursing the difference.

Important Action Points for Employers and Compliance Consultants

• Update employee benefit information: Revise internal HR guidance to reflect the increased funeral expenses benefit of ₹20,000.

• Communicate the revision: Inform relevant HR personnel and eligible beneficiaries about the revised amount and its effective date.

• Review relevant claims: Check pending claims and previously settled claims relating to the period beginning 8 May 2026.

• Coordinate with ESIC: Seek guidance from the concerned ESIC office regarding documentation, claim processing and any applicable differential-payment procedure.

The Employees’ State Insurance Corporation (ESIC) has issued a notification announcing that ESIC funeral expenses increased to ₹20,000 from the earlier amount of ₹15,000, representing an increase of ₹5,000. The revised benefit is effective from 8 May 2026, as specified in Notification No. N-12011/1/2023-P&D, dated 7 October 2026. The notification was published in the Gazette of India on 16 October 2026.

Conclusion

The increase in ESIC funeral expenses from ₹15,000 to ₹20,000 is an important employee-benefit update for employers and HR compliance teams. Organisations should review their existing guidance and ensure that eligible claimants are informed of the revised benefit.

Official reference: Employees’ State Insurance Corporation notification dated 7 October 2026, published in the Gazette of India on 16 October 2026.