Death Claims to be Processed within 07 Days and Retirement Claims to be Settled on the Day of Retirement

Press Information Bureau 

Government of India

Ministry of Labour & Employment

18-November-2016 11:25 IST

Death Claims to be Processed within 07 Days and Retirement Claims to be Settled on the Day of Retirement 

Payment of Statutory Contributions Henceforth only through Internet Banking 

The Prime Minister of India during the PRAGATI review meeting held on 26th October desired that claims related to death cases be prioritized and expedited and retirement claims may be settled on the day of retirement. In accordance, the processes have been reviewed and instructions have been issued to field offices to settle death claims within a period of 07 days from the date of receipt of proposal and retirement claims on the day of retirement. The officials in the facilitation centre of field offices have been instructed to scrutinize the claims and guide the claimant regarding submission of required documents in appropriate shape. An official has been posted in the facilitation centers of EPFO this category of claims.

Employers are now increasingly using internet banking to deposit statutory EPF dues since EPFO made it mandatory to use internet banking as the mode of receipt of EPF dues. 96.03% contributions in October 2016 were received online.

In an important judgment delivered by the High Court of Madras in the matter of writ petition filed by Builders Association of India, Madurai, the High Court dismissed the petition praying non enforcement of EPF & MP Act, 1952 every employee employed in or in connection with the work or that factory or establishment, other than an excluded employee, who has not become a member already shall also be entitled and required to become a member of the Fund from the date of joining the factory or establishment.

To expand the reach of convenience offered to EPF members, EPFO has joined the network of Common Services Centers (CSC). A Memorandum of understanding (MoU) has been signed between EPFO and CSC e-Governance Services India Limited (CSC SPV) on 25th October 2016. The MoU is initially for a period of five years. Every year on 14st November, pensioners were required to submit their life certificates. From this year onward, pensioners can submit digital life certificates via Jeevan Pramaan Patra programme through a large number of points of Presence (PoP) of CSC network in addition to those available at EPFO offices. The pensioners living in remote areas can avoid cost and inconvenience of travelling down to the EPF offices or their banks for filing paper based life certificate through this arrangement.

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Provision to submit Salary and Other Bills of June-12 due to accidental Condition.

As per Maharashtra Government Notification No. Sankirna 1012/Pra.Kra.64/Tresury Administrative Department Dated 24.06.12 by Finance Department, the provision to submit Salary and Other Bills of June-12 due to accidental causes instructions Click Here.

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HOW TO CALCULATE DEATH GRATUITY OF STATE/CENTRAL GOVERNMENT EMPLOYEE

Friends, If the State/Central Government employee died/Expired during his service, The Death Gratuity is granted at the time of expired of employee as following rates depending upon the length of qualifying service put in by the deceased employees:

Length of Service	Rate of Death Gratuity
Less than one year	2 times of emoluments
One year or more but less than 5 years	6 times of emoluments
5 years or more but less than 20 years	12 times of emoluments

Do you know, what is Emoluments?

Pay in the Pay Band + Dearness Allowance
admissible on the date of death.

Example :

Pay and allowance last drawn...

Pay in the Pay Band : 9,000

Grade Pay : 2,400

Dearness Pay (45%) : 5,130

Total : 16,530

Rate of Death Gratuity for the service of 20 years or more is "Half of emoluments for every completed six monthly period of service" subject to a maximum of 33 times of emoluments or Rs. 10 lakhs, whichever is less.

Length of Service	Rate of Death Gratuity	Amount of Death Gratuity
Less than one year	2 times of emoluments	Rs. 33,060
One year or more but less than 5 years	6 times of emoluments	Rs. 99,180
5 years or more but less than 20 years	12 times of emoluments	Rs. 1,98,360

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Procedure on death of Employee:

On the death of an employee before the amount standing to his credit has become payable, or where the amount has become payable before payment has been made.
i. When the subscriber leaves a family:
(a) If a nomination made by the subscriber in accordance with the provisions of rule 57 of the corresponding rule hereto before in force in favour of a member or members of his family subsists, the amount standing to his credit in the fund or the part thereof to which the nomination relates shall become payable to his nominee or nominees in the proportion specified in the nomination.
(b) If no such nomination in favour of a member or members of the family of the subscriber subsist, or if such nomination relates only to a part of the mount standing to his credit in the fund, the whole amount or the part thereof to which the nomination does not relates as the case may be shall notwithstanding any nomination purporting to be in favour of any person or persons other than a member or members of his family, become payable to the members of his family in equal shares:
(1) sons who have attained legal majority;
(2) sons of a deceased son who have attained legal majority;
(3) married daughters whose husband are alive;
(4) married daughter of a deceased son whose husband are alive:
if there is any member of the family other than those specified in clauses (1), (2), (3) and (4).

Provided further that, the widow or widows and the child or children of a deceased son shall receive between them in equal parts only the share which that son would have received, if he had survived the subscriber and has been exempted from the provisions of clause (1) of the first priviso.

ii. When the subscriber leaves no family and if he has made nomination in accordance with the provisions of rule 57 or the corresponding rule heretofore in force in favour of any person or persons subsist, the amount standing to his credit in the fund or the part thereof, to which the nomination relates, shall become payable to his nominee or nominees in the proportion specified in the nomination.

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