New Delhi: The Employees’ Provident Fund Organisation (EPFO) is responsible for safeguarding the provident fund (PF) contributions of employees. The EPFO also provides various facilities to PF members from time to time. Most private companies deduct PF contributions from their employees’ salaries.
If an employee has money in their PF account and suddenly dies, who will receive that money? This is a common concern among employees and their families. It’s important to know who receives the PF money after an employee’s death. This amount is disbursed by the EPFO.
Who receives the PF money after an employee’s death?
After an employee’s death, the EPFO disburses the PF money. However, the nominee is entitled to this amount. Both the employee and the company contribute to the EPF account. If an employee dies suddenly, the nominee has the right to withdraw the entire amount.
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The nominee can apply online through the EPFO’s official website. Alternatively, for an offline claim, they need to fill out the “Composite Claim Form (Death),” get it verified by the employer, and submit it to the PF office. If no nominee is registered, the legal heir or successor receives the PF money. They can claim it with a succession certificate. This EPFO rule is quite old.
Other amounts received
After an employee’s sudden death, the family also receives the outstanding salary and bonus. This means that the family receives the full salary for the days the employee worked before their death. If the company had a policy for bonuses, performance incentives, or annual bonuses, this amount is given to the nominee or legal heir. Some companies also pay for accrued leave to the family.
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EDLI benefits are also available
The EPFO also provides the benefit of EDLI insurance. This is a free life insurance cover linked to the PF account. The employee does not need to pay any premium for this. The entire cost is borne by the employer. If an employee dies while on the job for any reason, their nominee receives an insurance payout under this scheme, ranging from a minimum of ₹2.5 lakh to a maximum of ₹7 lakh.