Ashutosh Thakre
Hr Professional
+2 Others

Thread Started by #Divya K

Hi, Please guide me, how to calculate the gratuity in death case one who completed his 3 months of services. and let me know the eligibility criteria to get gratuity in case of death.
20th August 2014 From India, Bhatinda
Dear Divya,
The Gratuity formula will remain the same i.e. basic salary+Da *(15/26) * the no of years.
In this case you will have to take the years as one year to process the Gratuity. The minimum period of 5 years lapses in case of death of an employee. So the employee is liable for the gratuity even in your case.
Ashutosh Thakre
21st August 2014 From India, Mumbai
In death case, Gratuity is only paid after completion of 1 year service. No Gratuity is paid before 1 year. Gratuity Nomination Form is filled after one year it means that there is no gratuity before 1 year.
PF and ESI Nomination form is filled on the first day of joining, thus, PF and ESI is payable from the very first day. What anybody thinks after this difference please share.
Dinesh Kumar
21st August 2014 From India, New Delhi
The company has already provided for the gratuity in the CTC from day one. Therefore i think the payment is to be made.
21st August 2014 From India, Mumbai
Gratuity is to be paid to an employee who dies before completing the qualifying service of five years. But the Act is silent with respect to any minimum service in the case of death. For the purpose of calculation of amount of gratuity a service period extending six months shall mean one year whereas service of less than six months shall be ignored. Therefore, if the deceased had worked at least for six months and a day, his dependents would have got gratuity calculated at the rate of 15 days wages/ salary. However, being a death case, even if the service of one day is considered, the gratuity will not be more than what one should get for one year, ie, 15 days salary.

The Payment of Gratuity Act has made it obligatory on the part of employer to get nominations from all employees who have completed one year of service. The purpose behind this provision is that if any employee dies, his dependents/ nominees should get gratuity without undergoing hassles. If the employer is to give gratuity to dependents of a deceased employee who worked for less than one year or two months, as in the instant case, there could have a provision that nomination should be collected from an employee as and when he joins the establishment, like ESI or EPF. In the absence of it and since there is a provision that nomination is to be collected from employees who have completed one year of service, the question of payment of gratuity to dependents of employee who died before one year of service is doubtful.


Ashutosh Thakre
21st August 2014 From India, Mumbai
Dear All,
I have queries gratuity is calculated on 15 days , i know the formula but can we calculate gratuity on 20 day or 30 days . i came to know that we can calculate but if the person completed at 10 or 20 years service. please help me . it is on urgent basis.
Regards, Monali
21st August 2014 From India, Pune
in a death case how we should calculate the gratuity.
9th January 2019 From India, Delhi
Dear Member,
Formula for calculation of gratuity amount remains the same as provided by this Act.
15th February 2019 From India, Delhi
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