Please let me know if there is any rule/law as per Grautity Act for calculation of gratuity in case of death of an employee. I mean whether the remaining period of unserved service after the death of the employee shall be considered for calculatin of Gratutity.
From India, Delhi
2From India, Delhi
Dear Member,
The Payment of Gratuity Act, 1972 do not have any provision regarding payment of gratuity by the employer to the nominee(s)/ legal heir(s) for the remaining period of unserved service after the death of the employee. The payment is to be made only for actual service rendered by the deceased employee.
Regards,
R.N.Khola
From India, Delhi
The Payment of Gratuity Act, 1972 do not have any provision regarding payment of gratuity by the employer to the nominee(s)/ legal heir(s) for the remaining period of unserved service after the death of the employee. The payment is to be made only for actual service rendered by the deceased employee.
Regards,
R.N.Khola
From India, Delhi
Dear R.N.Khola, Is Training Period of any employee is consider to complete five year ? regards, ashsih
From United States, Santa Clara
From United States, Santa Clara
Hi Ashish, Gratuity is not related to experience but no. of years in service. If you have paid salary instead of stipend to the trainee during training period, that will be considered. Regards Rashee
From India, Delhi
From India, Delhi
Gratuity Calculation in case of Death regarding this we have got opinion of our legal consultant it is necessary that Gratuity Calculation in case of Death.
Regards
Sandip Kumbhar
Jr. Personnel Officer.
From India, Kolhapur
Regards
Sandip Kumbhar
Jr. Personnel Officer.
From India, Kolhapur
The payment of gratuity is done on the actual service rendered or completion of 5 years is must. sumit
From India, Ghaziabad
From India, Ghaziabad
Dear jks64,
As per guidelines of Gratuity act, Gratuity calculation is as follows
15 days wages for every completed year of service or part thereof in excess of 6 months.
The Wage/ 26 X 15 days X Nr of years of service (if he has put in 17 years + 7 months then it is considered as 18 years).
You need not consider his future service in case of death.
But in case you have a Group Gratuity Scheme with LIC OF INDIA, they cover the risk and the nominee of the deceased employee Gratuity for the service rendered and the service that he would have rendered in the company if he were alive (future service also). This is the most wonderful scheme that will come handy for HR professionals. Please contact LIC and make annual payment to LIC and this will also earn interest every year. Advise your Finance department about the benefits and they will be convinced.
All the best
M.V.KANNAN
From India, Madras
As per guidelines of Gratuity act, Gratuity calculation is as follows
15 days wages for every completed year of service or part thereof in excess of 6 months.
The Wage/ 26 X 15 days X Nr of years of service (if he has put in 17 years + 7 months then it is considered as 18 years).
You need not consider his future service in case of death.
But in case you have a Group Gratuity Scheme with LIC OF INDIA, they cover the risk and the nominee of the deceased employee Gratuity for the service rendered and the service that he would have rendered in the company if he were alive (future service also). This is the most wonderful scheme that will come handy for HR professionals. Please contact LIC and make annual payment to LIC and this will also earn interest every year. Advise your Finance department about the benefits and they will be convinced.
All the best
M.V.KANNAN
From India, Madras
Dear Member,
Gratuity is payable to an employee for the service he has rendered to the company. In case of death the company is not liable to pay for the future unserved service period. The payment is not necessarily for the completion of 5 years in case of death and permanent disablement. The calculation is done as mentioned above my Mr.kannan.
Person to whom gratuity is payable in case of death of the employee:
In short the subsection (1) of the Gratuity Act 1972 says that it is payable to the nominee and where no nomination has been made, to the heirs of the employee.
Regards,
Shreekanth.P.r
From India, Mumbai
Gratuity is payable to an employee for the service he has rendered to the company. In case of death the company is not liable to pay for the future unserved service period. The payment is not necessarily for the completion of 5 years in case of death and permanent disablement. The calculation is done as mentioned above my Mr.kannan.
Person to whom gratuity is payable in case of death of the employee:
In short the subsection (1) of the Gratuity Act 1972 says that it is payable to the nominee and where no nomination has been made, to the heirs of the employee.
Regards,
Shreekanth.P.r
From India, Mumbai
*last wage drawn X 15/26 Days X No of years he worked = Gratuity Amount
*completion of 5 years in case of death is not necessaary
*15 denotes to no of days per year
* If employee has compleated 6 months in any year so it will be consider as a year and we will take 15 days of this year also.
From India, Delhi
*completion of 5 years in case of death is not necessaary
*15 denotes to no of days per year
* If employee has compleated 6 months in any year so it will be consider as a year and we will take 15 days of this year also.
From India, Delhi
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