Major EPFO update: Death relief fund raised to Rs 15 lakh from April 2025

EPFO hikes ex-gratia for employees' families to Rs 15 lakh; benefit to rise 5 per cent annually from 2026 in step with costs

The Employees’ Provident Fund Organisation (EPFO) has raised the ex-gratia benefit available under its Death Relief Fund for employees of the Central Board. With effect from April 1, 2025, the amount payable to nominees or legal heirs in the event of an employee’s death while in service will increase from Rs 8.8 lakh to Rs 15 lakh.

 

The benefit will be disbursed from the Staff Welfare Fund. In its recent circular, EPFO said the hike is intended to provide greater financial security to families of employees.

 

Annual rise to keep pace with costs

From April 1, 2026, the ex-gratia amount will automatically increase by 5 per cent every year. This marks the first time the relief has been linked to inflation, ensuring that dependents of employees receive higher support as costs rise.

 

Other reforms for subscribers

The year 2025 has also seen several procedural changes aimed at making EPFO services simpler and faster:

 

·  Simplified death claim settlement: Guardianship certificates are no longer needed to release funds into the bank accounts of minor children.

 

·  Ease of Aadhaar updates: The joint declaration process has been simplified, making it easier to link or correct Aadhaar details with Universal Account Numbers (UAN). 

Jump registered in formal job creation in June

EPFO’s payroll data shows strong momentum in job creation. In June 2025, net formal employment additions touched 2.18 million, the highest since records began in April 2018. This was an 8.9 per cent rise over May 2025 and 12.9 per cent higher than June 2024.

 

Of the 1.06 million new subscribers in June, nearly 60 per cent were aged 18–25, indicating that a majority were first-time entrants into the workforce. About 1.69 million members also rejoined EPFO during the month after switching jobs, choosing to transfer their savings rather than withdraw them.

 

Women and state-wise trends

Female participation in EPFO schemes continued to grow, with 0.47 million net additions in June, a 10.3 per cent increase from the previous year.

 

Maharashtra accounted for the largest share of net payroll additions at just over 20 per cent, followed by Karnataka, Tamil Nadu, Gujarat, and Haryana. Together, the top five states and union territories contributed more than 60 per cent of the total.

 

Industry-wise, the strongest gains came from education, professional services, construction, and higher education institutions.