Numerous families have lost loved ones to Covid-19. Such losses can be heartbreaking, even more so if the deceased were a primary income earner in the family. Apart from grieving the death, dependents would have to cope with the agony of paperwork required to file various claims, particularly in the absence of advice. In this context, the following is a guide to the claims that a legal heir or dependent must make if the deceased individual was an employee.
The nominee is entitled to claim the entire balance remaining in the EPF account. In the absence of a nominee or a nomination, a legal heir may make a claim.
In the event of an employee’s death, his or her spouse will get a pension. As per EPS standards, an EPS member’s spouse and two children are entitled to a pension upon the member’s death. The children must be under the age of 25 and will receive 25% of the widow’s pension until they reach the age of 25.
That said, a disabled child will get 75% of the widow’s pension portion for the remainder of their life. If an employee has no dependents, the pension is payable to a single nominee. If no nomination is made and the deceased was unmarried, the pension will be paid to the deceased’s father, who will then pay it to the deceased’s mother for the remainder of their life.
The minimum benefit amount under EDLI is Rs 2.5 lakh, and the highest benefit amount is Rs 7 lakh, regardless of the employee’s pay. All EPF members are eligible for EDLI, which is funded by the employer.
Gratuity eligibility requires a minimum of five years of continuous service. Gratuity eligibility does not apply in the event of an employee’s death. “The nominee or legal heir will get a gratuity proportional to the number of years the employee worked for the company. Gratuity is payable solely to the nominee. It will be paid to the legal heir in the absence of a nomination. The maximum gratuity payable is Rs 20 lakh.
The nominee will receive other obligations such as salary benefits, statutory bonuses, and so forth. Without nomination, legal heirs receive it.
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