EPFO hikes death relief fund ex-Gratia to Rs 15 lakh, simplifies processes

The Employees’ Provident Fund Organisation (EPFO) has raised the ex-gratia amount under the Death Relief Fund for Central Board employees from Rs 8.8 lakh to Rs 15 lakh, effective from April 1, 2025. This amount will be provided to the nominee or legal heirs of employees who die while in service and will be disbursed from the Staff Welfare Fund.

In a circular dated August 19, 2025, EPFO stated: “…the undersigned is directed to convey the approval of the Central Provident Fund Commissioner/ President, Central Staff Welfare Committee, Employees’ Provident Fund Organisation, for enhancement of the ex-gratia amount under Death Relief Fund from Rs 8.80 Lakh to Rs 15 Lakh. The ex-gratia amount of Rs 15 Lakh (Rs Fifteen Lakh only) shall be paid to the family members (nominee or legal heirs) of the deceased employee of the Central Board, from the Staff Welfare Fund.”

EPFO has also announced that the ex-gratia amount will increase by 5% annually, starting from April 1, 2026, to keep pace with inflation and rising costs.

EPFO reforms in 2025

This year, EPFO has introduced several reforms aimed at simplifying procedures for subscribers. The death claim process has been streamlined, with guardianship certificates no longer required for settlement in the bank accounts of minor children.

The joint declaration process has also been simplified. Members who have not yet linked or verified their Aadhaar with UAN, or those needing corrections in Aadhaar details, can now complete this process more easily. These reforms aim to provide faster, more accessible services to employees and their families.

Record job growth

EPFO’s provisional payroll data for June 2025 shows the addition of 2.18 million net formal jobs, the highest since payroll tracking began in April 2018. This figure represents an 8.9% increase from May 2025, when 2.01 million jobs were added, and a year-on-year rise of 12.9% compared to 1.93 million jobs in June 2024.

Approximately 1.06 million new subscribers joined EPFO in June 2025, a growth of 12.6% over May 2025 and a year-on-year increase of 3.61%. Of these, 60.2% (0.64 million) were aged 18-25, showing that most new entrants into the organized workforce are young, first-time job seekers. Net payroll additions for this age group were 0.97 million, up 11.4% from May 2025 and 12.15% from June 2024.

The data also indicates that around 1.69 million members exited and subsequently rejoined EPFO in June 2025, a year-on-year increase of 19.6%. These members switched jobs but opted to transfer their EPF accumulations instead of applying for final settlement, ensuring continuity of benefits.

Female participation and state-wise trends

In June 2025, 0.47 million net female members were added to EPFO, up 10.3% from June 2024. New female member additions totaled 0.30 million, showing a 1.34% increase from the previous year.

State-wise, the top five states and union territories contributed 61.5% of net payroll additions, totaling around 1.35 million jobs. Maharashtra led with 20.03% of the net payroll, followed by Karnataka, Tamil Nadu, Gujarat, Haryana, Delhi, Uttar Pradesh, and Telangana, each contributing more than 5% of the total.

Industry-wise, growth was prominent in establishments related to schools, expert services, construction, and universities and colleges.