The Employees Provident Fund Organisation (EPFO) has increased the ex-gratia amount given under the Death Relief Fund for Central Board employees from Rs 8.8 lakh to Rs 15 lakh. This new system is effective from April 1, 2025.
This benefit will be given to the family members (nominee or legal heir) of the employee who dies during service. This amount will be given from the Staff Welfare Fund.
EPFO has said in its circular dated 19 August 2025 –
“…the undersigned is directed to convey the approval of the Central Provident Fund Commissioner/ President, Central Staff Welfare Committee, Employees’ Provident Fund Organisation, for enhancement of the ex-gratia amount under Death Relief Fund from ₹8.80 Lakh to Rs 15 Lakh. The ex-gratia amount of Rs 15 Lakh (Rs Fifteen Lakh only) shall be paid to the family members (nominee or legal heirs) of the deceased employee of the Central Board, from the Staff Welfare Fund.”
Ex gratia amount will be increased by 5% every year
Along with this, EPFO has also clarified that this amount will be increased by 5% every year from 1 April 2026.
“Further, this ex-gratia amount shall be increased by 5% every year starting from 01.04.2026,” the circular said.
It is worth noting that the Central Board of Trustees is the highest policy-making body of the EPFO, which includes representatives of the central and state governments, employers and employees.
Major changes of EPFO in 2025
This year, EPFO has taken many important steps for the convenience of its subscribers.
Death claim process simplified: Now Guardianship Certificate will not be required for settlement in the bank account of minor children.
Joint declaration process simplified: For those members who have not yet linked/verified their Aadhaar with UAN or need correction in Aadhaar details, now this process has been made even easier.
The purpose of these reforms is to provide quick and simple services to PF subscribers and their families.