ESIC funeral expenses set at ₹20,000 under the Social Security Code

What changed

The Employees' State Insurance Corporation has fixed the amount of funeral expenses at ₹20,000 under the Code on Social Security, 2020. The power comes from Section 32(1)(f) of the Code, read with Rule 21 of the Social Security (Central) Rules, 2026.

The notification is dated 7 October 2026 and was published in the Gazette on 16 October 2026. It applies from 8 May 2026, so it covers deaths from that date even though it was issued later.

Who it applies to

• Families and dependants of insured persons covered under ESI. This is also anyone who pays for the last rites of an insured person who has died.
• Employers registered with ESIC. Their employees' families can claim this benefit.

What to do

• Families: claim funeral expenses at the ESIC branch office where the deceased was registered. Take the death certificate and the insured person's ESIC details.
• Employers and HR teams: tell the families of insured employees who have died that this benefit exists and how much it is. Update any internal benefit notes to ₹20,000.
• If a death happened on or after 8 May 2026 and a lower amount was paid: check with the branch office whether the difference can be claimed.

Example

An insured factory worker dies on 15 June 2026. The family member who pays for the funeral can claim ₹20,000 from ESIC. The death falls after the 8 May 2026 start date, even though the notification came out in October.