Divya K
10

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.
From India, Bhatinda
Ashutosh Thakre
273

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.
Regards,
Ashutosh Thakre

From India, Mumbai
dineshkumarji.dks
37

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.
Regards
Dinesh Kumar

From India, New Delhi
Ashutosh Thakre
273

The company has already provided for the gratuity in the CTC from day one. Therefore i think the payment is to be made.
From India, Mumbai
Ashutosh Thakre
273

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.

Regards,

Ashutosh Thakre

From India, Mumbai
Monali1
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

From India, Pune
shashibhushan76
1

in a death case how we should calculate the gratuity.
From India, Delhi
R.N.Khola
363

Dear Member, Formula for calculation of gratuity amount remains the same as provided by this Act. R N KHOLA
From India, Delhi
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