ESI funeral expenses fixed at ₹20,000 under the Social Security Code, from 8 May 2026
TaxByKK · Compliance News · taxbykk.com7 Oct 2026
In short
The Employees' State Insurance Corporation has fixed the funeral expenses payable under the Code on Social Security, 2020 at ₹20,000. The notification is dated 7 October 2026, was published in the Gazette on 16 October 2026 and was posted on ESIC's circulars page on 4 November 2026. It applies with effect from 8 May 2026.
- Authority
- Employees' State Insurance Corporation (Planning & Development)
- Notification
- No. N-12011/1/2023-P&D dated 7 October 2026 (Gazette of India, Extraordinary, Part III, Section 4, No. 633, 16 October 2026)
- Type
- Notification
- Amount
- ₹20,000
- Effective from
- 8 May 2026
- Law
- Rule 21 of the Social Security (Central) Rules, 2026 read with section 32(1)(f) of the Code on Social Security, 2020
What changed
| Item | Before | Now |
|---|---|---|
| Funeral expenses payable under section 32(1)(f) of the Code on Social Security | Amount not stated in this notification | ₹20,000, from 8 May 2026 |
The notification is a single paragraph. It does not state the earlier amount, who receives the payment or how to claim it, and it does not say how claims for deaths between 8 May 2026 and the date of publication are to be handled. For those points, ask the ESIC branch office.
Who it applies to
- Families of insured persons covered by ESI
- Employers covered by the ESI scheme and their HR and payroll teams
- CAs, consultants and lawyers handling ESI matters
What to do
- Families: when claiming funeral expenses for an insured person, note that the notified amount is ₹20,000.
- HR teams: update employee handbooks and help desks that quote the funeral benefit.
- For a death on or after 8 May 2026 where a lower amount was paid, ask the ESIC branch office whether the difference is payable; the notification does not say.
Reference
ESIC notification No. N-12011/1/2023-P&D, 7 October 2026, issued under rule 21 of the Social Security (Central) Rules, 2026 read with section 32(1)(f) of the Code on Social Security, 2020; Gazette of India, Extraordinary, Part III, Section 4, 16 October 2026.
Read the official PDF: ESIC notificationWritten by TaxByKK from the official notification. Check the official text before you act on it.
Frequently asked questions
How much are ESI funeral expenses now?
₹20,000, as notified by ESIC on 7 October 2026.
From when does the ₹20,000 amount apply?
With effect from 8 May 2026.
Under which law is it paid?
Section 32(1)(f) of the Code on Social Security, 2020, read with rule 21 of the Social Security (Central) Rules, 2026.