Employment law
Death benefit
Seven in the morning, the Frigo-Transports du Mali workshop. The refrigerated trucks are waiting for their mechanic, Lassana, who will not come: he died during the night, aged 46. His widow asks the manager whether “Lassana’s pension” will go to the family. Everything depends on one figure: his years of contributions. He was six months short.
Frigo-Transports du Mali and the people mentioned in this article are fictitious: they are used as examples only.
1. What exactly are we talking about?
Frigo-Transports du Mali employs 40 people in Bamako. Lassana had been a mechanic there for twelve and a half years, declared to the National Social Security Institute (INPS) from the day he was hired.
“Death benefit” is not a single benefit. The expression covers three separate benefits, which the INPS pays to the family depending on the situation of the deceased:
| Situation of the deceased | Benefit | Payment |
|---|---|---|
| Retiree, or employee with at least 13 years of insurance | Survivor’s pension (article 152) | Every month |
| Employee with less than 13 years of insurance | Survivor’s allowance (article 154) | Once |
| Death caused by an accident at work | Accident-at-work annuities (article 126) | Annuity |
The survivor’s pension goes to the survivors of a pension holder, or of an insured person who met the conditions for a retirement or disability pension (Social Security Code, article 152). The survivor’s allowance is paid once to the survivors of an insured person with less than thirteen years of insurance (Social Security Code, article 154).
Why this distinction? A monthly pension requires a long enough contributory career; below that, the scheme pays a lump sum in proportion to the contributions.
The most common mistake
Treating all deaths the same way. The same family may receive an annuity, a pension or a single lump sum, depending on the cause of death and the contribution period.
Thirteen years of contributions: below, a lump sum once; above, a pension every month.
2. Who are the survivors?
The Code recognises two categories of survivors (Social Security Code, article 153): the widow or widower, provided the marriage took place at least two years before the death, and the children dependent on the deceased, as defined for family benefits.
| Child’s situation | Age limit |
|---|---|
| General case | Under 14 |
| Child in apprenticeship | 18 |
| Child in education | 21 |
| Child with a disability or incurable illness | 21 |
The age limits are those for family allowances (articles 23 and 24). Lassana had been married for nine years and leaves three children aged 5, 10 and 15, the eldest at secondary school: all are survivors.
Two conditions often wrongly added
It is often said that the spouse must be “neither remarried, nor divorced, nor legally separated”. Those conditions appear in the accident-at-work scheme (article 126), not in the survivor’s pension scheme; the INPS only asks the spouse for a certificate of non-remarriage when the file is submitted. It is also said that a child with a disability is covered “beyond 21”: on the contrary, the text sets the limit at 21.
What you need to do
- Gather the marriage certificate and birth certificates to check each survivor’s situation.
- Check for each child over 14 that they are in school, in apprenticeship or have a disability.
3. Thirteen years: the dividing line
For the allowance, the INPS pays one instalment of the 156-month reference pension, i.e. 26% of average remuneration, per six-month period of insurance (article 157). For the pension, it calculates the reference pension like a standard retirement pension, at 2% per year of insurance, then applies 50% for the spouse and 10% per orphan.
Example. Lassana had an average monthly remuneration of XOF 200,000 and twelve and a half years of insurance, i.e. 150 months.
Reference pension for 156 months: 200,000 × 26% = XOF 52,000
Six-month periods of insurance: 150 ÷ 6 = 25
Survivor’s allowance: 52,000 × 25 = XOF 1,300,000, paid once
Example. Had Lassana reached thirteen years of insurance, his family would have received a monthly pension.
Reference pension: 200,000 × 2% × 13 = XOF 52,000
Widow: 52,000 × 50% = XOF 26,000 per month
Three orphans: 3 × (52,000 × 10%) = XOF 15,600 per month
Total: 26,000 + 15,600 = XOF 41,600 per month
In 32 months, the family would already have received 41,600 × 32 = XOF 1,331,200, more than the allowance
Six months of contributions make all the difference. An employee declared late, or months not declared, can push a family over to the allowance side. See our article Survivor’s pension.
What you need to do
- Declare every employee to the INPS from the day they are hired, so that every month counts.
- Regularly check that INPS statements include all periods worked.
4. The employer’s role: declare, pay, inform
Death ends the contract. The employer pays the heirs the salary due and the pay in lieu of paid leave, paid immediately on termination (Labour Code, article L.162). It declares the end of the contract to the INPS within eight days (Social Security Code, article 163), issues the certificate of employment (article L.61) and completes the INPS employment and earnings certificate.
If the death is caused by an accident at work, the employer reports it to the INPS and the labour inspectorate within 48 hours (article 71 of the Social Security Code and article L.176 of the Labour Code). Funeral expenses are reimbursed by the INPS up to the limit set by article 137.
The deadlines that cost the family
According to the INPS, the survivor’s pension of an employee who dies in service takes effect on the day after the death if the claim is filed within six months; after that, only on the first day of the month following its receipt. And the claim for payment of benefits is time-barred after two years (article 166).
What you need to do
- Report the death to the INPS within eight days, or within 48 hours in the case of an accident at work.
- Pay the heirs the salary and the paid-leave compensation.
- Give the family a written note setting out the six-month deadline and the list of documents to provide.
5. A closer look: when the deceased was already retired
On the death of a retiree, the survivor’s pension is calculated on the pension they received: 50% for the spouse, 10% per orphan, with all orphans together capped at 50% (article 157). According to the INPS, it takes effect on the first day of the month following the death.
An important exception: the old-age allowance is not on the list in article 152. On the death of its holder, it does not pass on. See our article Old-age allowance.
Key takeaways in 5 points
- Identify the situation of the deceased: retiree, employee with more or less than thirteen years of insurance, or victim of an accident at work.
- Check the survivors: spouse married for at least two years, dependent children within the family allowance age limits.
- Do not apply the accident-at-work conditions on remarriage or divorce to the pension, and have the INPS confirm the effect of a remarriage.
- Report the death to the INPS within eight days and pay the heirs the salary and leave due.
- Declare every employee from the day they are hired: a few months of contributions separate a single lump sum from a monthly pension.