ESIC Funeral Expenses ₹20,000, Confinement ₹15,000 from 8 May 2026: Benefit Rates Under Social Security Rules 2026

ESIC has raised the money paid towards an insured person's funeral to ₹20,000 per case, doubled confinement expenses to ₹15,000 per case, and raised the contribution for availing medical benefit to ₹50 per month — and all three changes apply to cases on or after 8 May 2026. The changes are set out in ESIC Headquarters circular No. N-12015/2/2026-Benefit-II, dated 3 November 2026, whose subject line reads, in full: "Modifications in the Insurance Module consequent upon changes in the rates of contribution / rates of benefits in accordance with the Social Security (Central) Rules, 2026". The circular, signed by Chandan Prabhakar, Deputy Director (Benefit-II), updates ESIC's Insurance Module to reflect the new rates under the Social Security (Central) Rules, 2026, and was issued with the approval of the Competent Authority.

In plain language, this is a straightforward increase in the cash support an insured worker's family gets at two of the hardest moments in life — a death in the family and the birth of a child — plus a higher annual payment for retired and permanently disabled insured persons who want to keep their ESIC medical cover. The amounts are modest in absolute terms, but for a worker earning up to the ESI wage ceiling, an extra ₹5,000 towards a funeral or an extra ₹7,500 at confinement is real money, and the backdating to 8 May 2026 means families whose cases arose months before the circular was issued are covered by the new rates.

What changed: the three new rates

The circular makes three changes to the Insurance Module, each tied to a specific rule of the Social Security (Central) Rules, 2026. The Rules themselves were published in the Gazette of India on 8 May 2026, and that date is the anchor for everything in the circular: every change is deemed applicable only in cases on or after 8 May 2026.

1. Funeral expenses: ₹20,000 per case — Rule 21. The amount payable towards the funeral expenses of a deceased insured person is now ₹20,000 per case. The figure was fixed by ESIC notification No. N-12011/1/2023-P&D, published in the Gazette of India on 7 October 2026, under Rule 21 of the Social Security (Central) Rules, 2026. The 3 November circular carries that notified figure into the Insurance Module so that claims are processed at the new rate.

2. Confinement expenses: ₹15,000 per case — Rule 22(4). The amount payable on account of confinement expenses is now ₹15,000 per case, double the earlier ₹7,500. Confinement expenses are the cash support paid when a child is born to an insured woman, or to an insured person in respect of his wife, in circumstances where the delivery does not take place using ESIC's own medical facilities — the position under the old Rule 56A of the ESI (Central) Rules, 1950, which the circular does not restate.

3. Contribution for availing medical benefit: ₹50 per month, ₹600 per annum — Rules 25(10) and 25(11). The contribution payable for availing medical benefit is now ₹50 per month, payable as a lump sum of ₹600 per annum. This is the contribution paid by insured persons who are no longer in insurable employment but continue to receive ESIC medical benefit — under the old Rules 60 and 61 of the ESI (Central) Rules, 1950, that category covered insured persons who ceased insurable employment on account of permanent disablement caused by an employment injury, and insured persons who left insurable employment on attaining the age of superannuation after being insured for not less than five years, in each case for themselves and their spouse.

The circular also records that the Insurance Module has been updated to reflect these rates and that user manuals are enclosed with the circular for the offices that operate the module. It does not change any other rate, and it does not announce any change to contribution rates for employers or employees in active insurable employment.

Old vs new: what the rates were before

One thing the circular itself does not do is state the old rates. It gives only the new figures. The earlier rates below are taken from the ESI (Central) Rules, 1950, as reported, and are shown so readers can see the size of each change — they are not figures the 3 November circular itself states.

The pattern is worth noting: the two cash benefits paid to insured persons and their families have gone up, while the contribution paid by retired and permanently disabled insured persons to keep their medical benefit has also gone up — fivefold, from ₹120 a year to ₹600 a year. For a retired insured person, that is an extra ₹480 a year to keep medical cover for himself and his spouse. The circular does not give reasons for the size of any of these changes, and this article does not speculate about them.

Why 8 May 2026 matters more than 3 November 2026

There are two dates in this story, and confusing them is the easiest mistake a reader or an HR team can make. The circular is dated 3 November 2026, and it appeared on ESIC's circulars page on 4 November 2026. But the rates do not start on 3 November. The circular says, in terms, that the changes are deemed applicable only in cases on or after 8 May 2026 — the date the Social Security (Central) Rules, 2026 were published in the Gazette of India and came into force.

That backdating has a direct consequence, and it is the most important practical point in the circular: cases that arose between 8 May 2026 and 3 November 2026 get the new rates. A funeral that took place in, say, July 2026, or a confinement in September 2026, falls on or after 8 May 2026 and is therefore covered by the ₹20,000 and ₹15,000 figures respectively — even though the circular telling ESIC's own offices to update their systems only arrived in November. The funeral figure has its own separate anchor too: ESIC's notification fixing ₹20,000 was published in the Gazette on 7 October 2026, but the circular applies it to cases from 8 May 2026.

The other side of the same line is equally clear: cases before 8 May 2026 do not get the new rates. The circular's words are "only in cases on or after 08.05.2026", which draws a hard line at that date. A case that arose on 7 May 2026 is governed by the old rates under the ESI (Central) Rules, 1950.

Where these rates come from: the Code on Social Security, 2020

The new rates sit inside a larger legal change that readers should understand in outline. The Code on Social Security, 2020 consolidates and replaces the earlier standalone social security laws, including the Employees' State Insurance Act, 1948. The Social Security (Central) Rules, 2026, published in the Gazette of India on 8 May 2026, are the central rules framed under the Code, and they replace the ESI (Central) Rules, 1950 for the matters they cover. That is why the rule numbers change: funeral expenses move from Rule 59 of the 1950 Rules to Rule 21 of the 2026 Rules, confinement expenses from Rule 56A to Rule 22(4), and the medical-benefit contribution from Rules 60–61 to Rules 25(10) and 25(11).

For insured persons, employers and HR teams, the practical meaning is simple: the old rule numbers and the old amounts in handbooks, offer letters, HR policy documents and payroll notes are now out of date. Any document that still quotes ₹15,000 for funeral expenses, ₹7,500 for confinement expenses or ₹10 per month for the medical-benefit contribution is quoting the pre-8 May 2026 position. The circular is the document that tells ESIC's own system — the Insurance Module — to process claims at the new figures, and the enclosed user manuals are the operating instructions for the offices that do that processing.

Who is affected

• Families of deceased insured persons. On the death of an insured person, funeral expenses of ₹20,000 per case are now payable towards the last rites, up from ₹15,000. This is the benefit most likely to be claimed in distress, and the one where the backdating to 8 May 2026 matters most, because families who lost someone between May and November 2026 fall within the new rate.
• Insured women and insured persons in respect of their wives, on confinement. Confinement expenses of ₹15,000 per case are now payable, double the earlier ₹7,500. Under the old Rule 56A, the benefit was payable where the confinement occurred at a place where necessary medical facilities under the ESI Scheme were not available, and for two confinements only. Whether those two conditions survive unchanged under the new Rule 22(4) is NOT CHECKED — the 3 November circular does not restate them, and this article does not assume they do.
• Retired and permanently disabled insured persons who pay to keep medical benefit. The contribution for availing medical benefit is now ₹50 per month, or ₹600 per annum in lump sum, up from ₹10 per month. Under the old Rules 60 and 61, this contribution bought continued medical benefit for the insured person and his or her spouse after leaving insurable employment — on permanent disablement caused by an employment injury, or on superannuation after at least five years of insurance. Which categories of insured persons pay the contribution under the new Rules 25(10) and 25(11) is NOT CHECKED — the circular states the rate, not the categories, and this article does not assume the old categories carry over unchanged.
• Employers and HR/payroll teams. No contribution rate for active employment changes under this circular, but HR teams are the people who usually tell a bereaved family or an expectant employee what ESIC will pay. Updating internal notes, intranet pages and claim guidance from the old figures to ₹20,000, ₹15,000 and ₹50 per month is the immediate housekeeping item, and getting the 8 May 2026 date right is the difference between a family being told the old amount and the new one.
• ESIC branch and regional offices. The circular is addressed to the Corporation's own machinery: the Insurance Module has been updated and user manuals enclosed, so offices process these three items at the new rates for cases on or after 8 May 2026.

What to do next

1. Check the date of the case first. The single most important fact in any claim under this circular is the date the case arose. If the death or the confinement occurred on or after 8 May 2026, the new rates — ₹20,000 for funeral expenses, ₹15,000 for confinement expenses — apply. If it occurred before 8 May 2026, the old rates apply. Note the date down before anything else.
2. Quote the new figures, not the old ones. Families and employees should be told ₹20,000 (funeral), ₹15,000 (confinement) and ₹50 per month / ₹600 per annum (medical-benefit contribution). HR teams should correct any handbook, intranet page or offer-letter annexure that still carries ₹15,000, ₹7,500 or ₹10 per month for these items.
3. Contact the ESIC branch office for the claim. The circular updates ESIC's Insurance Module and encloses user manuals for its offices, but it does not itself set out a claim form, a filing deadline or a portal step. For the claim itself — which form to file, what documents to attach, and by when — contact the concerned ESIC branch office and ask what it requires for a case under the new rates. Do not rely on this article for the claim procedure, because the circular does not state it.
4. Retired and permanently disabled insured persons: check the new annual amount before paying. The medical-benefit contribution is now ₹600 per annum in lump sum. Anyone renewing or paying this contribution should confirm with the branch office that ₹600 is the amount being collected for the year, rather than paying the old ₹120 out of habit.
5. If a case between 8 May and 3 November 2026 was already settled at the old rate, ask the branch office. Whether a claim already paid at the old rate in that window will be topped up to the new rate is NOT CHECKED — the circular says the new rates apply to cases on or after 8 May 2026, but it does not say how already-settled cases in that window are to be handled. Do not assume a top-up is automatic, and do not assume it is refused; ask the branch office and keep the case papers.
6. Keep the circular and the notification numbers handy. When speaking to the branch office, cite ESIC circular No. N-12015/2/2026-Benefit-II dated 3 November 2026, and for funeral expenses, ESIC notification No. N-12011/1/2023-P&D dated 7 October 2026. A precise reference gets a faster answer than a general description of "the new ESIC rates".

What the circular does not say

Three points are marked NOT CHECKED in this article because the circular itself does not address them, and no official clarification has been traced:

• Whether the old confinement conditions survive. NOT CHECKED — under the old Rule 56A, confinement expenses were payable only where ESI medical facilities were not available at the place of confinement, and for two confinements only. The circular cites the new Rule 22(4) but does not restate any such conditions, and this article does not assume they continue.
• Who pays the medical-benefit contribution under the new Rules 25(10)–(11). NOT CHECKED — the circular states the ₹50 per month / ₹600 per annum rate but does not restate the eligible categories. The old Rules 60–61 categories (permanently disabled and retired insured persons, with spouse) are described above as the old position only.
• How already-settled cases from 8 May to 3 November 2026 are handled. NOT CHECKED — the circular applies the new rates to cases on or after 8 May 2026 but does not say whether claims already paid at the old rates in that window are topped up, and this article does not assume either outcome.

Do not advise on any of these three points from this article alone; check the Social Security (Central) Rules, 2026, and any later ESIC clarification, or ask the concerned ESIC branch office, before acting.

FAQs

What are the new ESIC funeral expenses in 2026?
Funeral expenses payable on the death of an insured person are now ₹20,000 per case, fixed by ESIC notification No. N-12011/1/2023-P&D dated 7 October 2026 under Rule 21 of the Social Security (Central) Rules, 2026, and carried into ESIC's Insurance Module by circular No. N-12015/2/2026-Benefit-II dated 3 November 2026. The earlier amount was ₹15,000 per case under Rule 59 of the ESI (Central) Rules, 1950.

What are the new ESIC confinement expenses in 2026?
Confinement expenses are now ₹15,000 per case under Rule 22(4) of the Social Security (Central) Rules, 2026, as stated in ESIC circular No. N-12015/2/2026-Benefit-II dated 3 November 2026. The earlier amount was ₹7,500 per case under Rule 56A of the ESI (Central) Rules, 1950, so the new figure is double the old one.

How much is the ESIC medical benefit contribution now?
The contribution for availing medical benefit is now ₹50 per month, payable as a lump sum of ₹600 per annum, under Rules 25(10) and 25(11) of the Social Security (Central) Rules, 2026. The earlier contribution was ₹10 per month under Rules 60 and 61 of the ESI (Central) Rules, 1950.

Do the new ESIC benefit rates apply to cases between 8 May 2026 and 3 November 2026?
Yes. ESIC circular No. N-12015/2/2026-Benefit-II dated 3 November 2026 states that the changes are deemed applicable only in cases on or after 8 May 2026, the date the Social Security (Central) Rules, 2026 were published in the Gazette of India. A case that arose on or after 8 May 2026 gets the new rate even though the circular was issued on 3 November 2026.

From when do the new ESIC funeral, confinement and medical benefit rates apply?
All three changes apply to cases on or after 8 May 2026. Cases that arose before 8 May 2026 remain governed by the old rates under the ESI (Central) Rules, 1950 — ₹15,000 for funeral expenses, ₹7,500 for confinement expenses and ₹10 per month for the medical-benefit contribution.

What is ESIC circular No. N-12015/2/2026-Benefit-II?
It is the ESIC Headquarters circular dated 3 November 2026, signed by Chandan Prabhakar, Deputy Director (Benefit-II), on "Modifications in the Insurance Module consequent upon changes in the rates of contribution / rates of benefits in accordance with the Social Security (Central) Rules, 2026". It updates ESIC's Insurance Module for the new funeral, confinement and medical-benefit rates and encloses user manuals for the offices that operate the module.

Sources

• Primary source: ESIC Headquarters circular No. N-12015/2/2026-Benefit-II dated 3 November 2026 (file ref I/4585013/2026) — esic.gov.in (official PDF)
• ESIC circulars listing: esic.gov.in/circulars (Benefit Branch-II, Console No. 26965/2026, site date 04-11-2026)
• Prior position: ESI (Central) Rules, 1950 — Rule 59 (funeral expenses ₹15,000), Rule 56A (confinement expenses ₹7,500), Rules 60–61 (medical-benefit contribution ₹10 per month) — text as published on Indian Kanoon

Last verified by team: 5 November 2026, against the official ESIC circular PDF on esic.gov.in. Every new rate in this article traces to that circular (and, for funeral expenses, to ESIC notification No. N-12011/1/2023-P&D dated 7 October 2026 as cited in the circular); the old rates are from the ESI (Central) Rules, 1950 as reported, and are expressly not figures the circular states. Points the circular does not address are marked "NOT CHECKED" above.