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Business News/ Money / Personal Finance/  Claims to be made in case of an employee’s death

Claims to be made in case of an employee’s death

If an employee dies, EPS will be given to the spouse and two children, who must be below 25 to be eligible

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Many have lost their loved ones to covid-19. Such losses can be devastating, especially if the deceased is an earning member of a family. Besides dealing with the loss, the dependents will also have to handle the pain of paperwork required to make various claims, especially in the absence of guidance. In this context, here is a guide to the claims that need to be made by a legal heir or dependent in case the deceased person was an employee.

Employees’ Provident Fund (EPF): The nominee can claim the full amount that stands balance in the EPF account. If a nominee is absent or where nomination is not made, a legal heir can make the claim. “Previously, the nominee had to submit Form 20, Form 10-D and Form 5(IF) for the death claim, but now EPFO has introduced the Composite Claim Form in Death Cases for death claims," said Prashant Singh, vice president and business head-CPO, TeamLease Services. “If nomination is updated online, the nominee or beneficiary can submit the application online, if not, the physical copy of the application has to be submitted to EPFO," he added.

Pension under Employee Pension Scheme (EPS): If an employee dies, pension will be given to the spouse. “As per EPS rules, a spouse and two children will get pension upon the death of an EPS member. The children must be below 25 years of age and will receive 25% of the widow’s pension until they turn 25," said Singh. A disabled child will get 75% of the widow’s pension share until his or her lifetime. If an employee does not have a family, pension is payable to one nominee. If no nomination exists, and the deceased was unmarried, pension will be paid to his or her father, after whose death it will be paid to mother for a lifetime.

Employees Deposit-Linked Insurance (EDLI): The minimum benefit under EDLI is 2.5 lakh, and the maximum is 7 lakh, irrespective of the salary of the employee. All EPF members are eligible for EDLI and the employer contributes towards it.

Gratuity: Gratuity eligibility of minimum 5 years of continuous service does not apply if an employee dies. “Gratuity payable to the nominee or legal heir will be equal to the number of years the employee worked with the company. Gratuity is payable to nominee alone. In the absence of nomination, it will be paid to the legal heir. Maximum gratuity payable is 20 lakh," said Singh.

Other dues: The other dues such as salary benefit, statutory bonus, etc., will be paid to the nominee. In the absence of nomination, legal heirs get it.

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Published: 20 Aug 2021, 01:44 AM IST
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