ESIC funeral expense amount now fixed at Rs 20,000
ESIC's gazette notification fixes funeral expenses at Rs 20,000 from 08 May 2026, with no filing change.
- Document
- Circulars
- Dated
- 04 Nov 2026
- Effective
- This notification shall come into force with effect from 08th May, 2026.
This page was written by Patron Accounting’s AI from the official release and reviewed before publishing. It explains the document in plain language. It is not the document itself. Where this page and the original differ, the original governs.
The short version
- ESIC has fixed funeral expenses at a flat Rs 20,000.
- The amount applies from 08 May 2026, as the notification states.
- The notification does not state the amount that applied before.
- It states no new filing, registration or compliance step for employers.
In short
This ESIC gazette notification, issued on 4 November 2026 and effective from 8 May 2026, sets funeral expenses under the Employees' State Insurance (ESI) scheme at Rs 20,000. It gives effect to clause (f) of section 32(1) of the Code on Social Security, 2020, which provides for funeral expenses, read with Rule 21 of the Social Security (Central) Rules, 2026, which sets the amount.
What has changed
How it worked before
The notification does not say what the funeral expense amount was before. The title calls the change an enhancement, but the earlier figure is not stated in the notice.
What has changed
Funeral expenses payable under the ESI scheme are now a fixed Rs 20,000. The notice applies this from 08 May 2026.
Who this affects
If you are insured under ESI as a salaried employee, or your family claims funeral expenses from ESIC, this applies to you.
An example
A factory worker insured under ESI passes away, and the family applies to ESIC for funeral expenses. Under this notification, the amount payable is a flat Rs 20,000. The family does not need to file anything new because of this change, as the notice states no such step.
What you should do
No action is needed. The notice states no filing, registration or compliance step for employers or practitioners.
If you do nothing
The notification does not set out any penalty, interest or deadline for doing nothing. If you are not making a claim for funeral expenses, nothing in this notice changes for you.
The terms explained
- ESI
- Employees' State Insurance, a government health and benefits scheme for covered salaried employees and their families.
- funeral expenses
- The money ESIC pays towards a funeral for an insured person, under the ESI scheme.
- Social Security (Central) Rules, 2026
- The central government's rules made under the Code on Social Security, 2020, which set the detailed working of the law.
The original document
| Issued by | ESIC |
|---|---|
| Document | Circulars |
| Full title | Gazette Notification regarding Funeral expenses enhancement |
| Issued on | 04 November 2026 |
| Effective | This notification shall come into force with effect from 08th May, 2026. |
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