Sudden Employee Death: Is the Nominee Eligible for a Pension?

An employee joined the company today! After some time (after two or three months), he has died. Will the nominee be eligible for a pension or not?

Hi, Pension for the Family if the EPFO Member Dies During Active Service Term A member's family/dependents will be eligible for the pension in the following cases:

- If the EPFO member dies while in active service and the employer has deposited funds in his/her EPS account for at least one month.
- If the EPFO member has completed 10 years of service and dies before reaching the age of 58 years.
- If the EPFO member dies after the start of the monthly pension.

An important criterion is that the employee should be a contributing member to PF on the day of death.

Thank you for your prompt response. However, my question is, for example, if an employee joins our organization today but unfortunately passes away after some time, will their family/nominee be eligible for the pension or not? If they are not eligible, what are the criteria and how many days are required?

Dear Suresh, In your case, the nominee is eligible to receive the pension benefit.

Hi Suresh, Please refer to the reply already given. If the EPFO member dies while in active service and the employer has deposited funds in his/her EPS account for at least one month, the nominee may be eligible for a pension.

As per my understanding, 240 days must be for eligibility. Is it okay or not? Please correct me. Sir, your answer is very valuable to me.

Dear Friend, he should work for 240 working days. EPF won't pay for employees who have worked for 2-5-8 months, as per a discussion with an EPF Officer long back. Hence, when you submit the application, it will be rejected. We have seen some cases in Bangalore.

Regards, Karunakaran Y N
Principal Consultant
KLP CORPORATE SERVICES

There is no 240-day criterion for EPS benefits. The family is eligible. Once the employee is enrolled as a member of the EPF Scheme, EDLI benefits and EPS accrue automatically.