When an Employees’ Provident Fund Organisation (EPFO) member passes away, their family or nominee is entitled to several financial benefits — not just the Provident Fund balance. These benefits are designed to provide financial support during a difficult time and include PF settlement, gratuity, EDLI insurance and family pension.
Understanding these entitlements can help nominees ensure that they receive the full amount legally due to them.
Full EPF Balance Payable to Nominee
The nominee can claim the entire EPF balance of the deceased member, which includes:
- Employee’s contribution
- Employer’s contribution
- Interest accumulated on both amounts
If the nominee’s details are updated in the EPFO records, the claim can be filed online through the EPFO portal. Otherwise, the claim can be submitted offline using the Composite Claim Form.
Gratuity Benefit
If the employee dies while in service, gratuity becomes payable to the nominee or legal heir, even if the employee has not completed five years of service. The gratuity amount is calculated based on the employee’s last drawn salary and length of service.
This benefit is provided under the Payment of Gratuity Act and is usually settled by the employer.
EDLI Life Insurance Cover
EPFO members are automatically covered under the Employees’ Deposit Linked Insurance (EDLI) Scheme. If the employee dies while in service, the nominee can receive a lump-sum insurance payout.
- Minimum cover: ₹2.5 lakh
- Maximum cover: up to ₹7 lakh (subject to EPFO rules)
The EDLI benefit does not require any additional contribution from the employee, as it is funded by the employer.
Family Pension Under EPS
If the deceased employee was covered under the Employees’ Pension Scheme (EPS), eligible family members may receive a monthly pension.
- The spouse is usually entitled to lifelong pension
- Children may receive pension benefits until a specified age
- Pension amount depends on service period and salary details
This benefit provides long-term financial support to the family.
Other Possible Claims
In addition to EPFO benefits, nominees may also be entitled to:
- Pending salary or arrears
- Leave encashment
- Bonus or incentives due from the employer
These claims are handled directly by the employer and are separate from EPFO settlements.
Disclaimer:
This article is for informational purposes only. EPFO rules, eligibility conditions and benefit amounts are subject to change based on government notifications and EPFO guidelines. Readers are advised to verify details through the official EPFO website or consult the employer or EPFO office for the latest and accurate information. The website does not provide legal or financial advice.
