Query
Dear all, Kindly provide us the Gratuity calculation in case of death. Please find below details of the employee:

DOJ – 14-May-07
DOB - 20-Aug-62
Basic - INR 26,375

Regards
Aditi
Anonymous

4th November 2017 From India, Mumbai

PARTICIPATING IN DISCUSSION:
Madhu.T.K
Industrial Relations And Labour Laws
Umakanthan53
Labour Law & Hr Consultant
Rujul
Sr.officer At J K Lakshmi Cement Ltd
Srinath Sai Ram
Hr Manager
Manojkamble
Sr. Hr Executive

Dear ADITI, you have been very casual in your Post.DOJ:14/05/2007 Date of Leaving:? Last Drawn Basic+DA+VDA:rS26,375/-
4th November 2017 From India, New Delhi
Hi,

In case of death gratuity calculation will be BASIC+DA/26*15*No of service till retirement.
4th November 2017
Dear Aditi,
The minimum service of not less than 5 years continuous service is not necessary in the case of termination of employment due to the death of the employee. You have to compute gratuity based on the actual no of years of service rendered by him till his death only. Therefore,
Amount of gratuity in case of death = Last drawn wages [sum of basic+D.A] /26 X 15 X No. of years of service rendered.
4th November 2017 From India, Salem
If your gratuity fund is invested in LIC's death cum gratuity scheme with an additional benefit which will accrue in case of death, then only the gratuity will be paid based on service till the date of retirement.

The Payment of Gratuity Act by its section 4A has mandated investing the gratuity fund in LIC but the same is being implemented by the state according to their choice. Some states, like Kerala, have notified the date on which this provision has become mandatory. If your state has notified the date on which section 4A is made effective, then your establishment should also invest your gratuity fund in LIC or such other insurers which are notified by the state for this purpose. Again it is not mandatory that you should take a death cum gratuity policy but it is always advisable to have this kind of policy which will assure payment of gratuity based on service till date of superannuation in the case of death while in service against payment of a small premium.

Therefore, please check whether your establishment has taken policy like this and if so the dependents of the deceased will get the benefit of higher gratuity. The gratuity in such cases is paid not by the employer directly to the employee or the dependents of the deceased employee but by the LIC to the Gratuity Trust and then by the gratuity trust to the employee or the dependent of the deceased employee, as the case may be.

Madhu T K
6th November 2017 From India, Kannur
Dear aditi,

as details provided if he left/ died in the month of november then graduate would be rs.159771.63. As per calculation of 26375 ( basic + da) / 26 ( work days in a month ) * 15 * 10.5 year of services = 159771.63
11th November 2017 From India, Gurgaon
There is no fraction of service in gratuity calculation. Any fraction of actual service over 6 months (let it be 6 months and one day) will be taken as one year and any fraction of service of less than 6 months ( let it be just one day short of 6 months) will be ignored. If the fund is linked to LIC's death cum gratuity scheme, the calculation is different. Please follow the previous post.

It is very interesting that the thread starter, Ms/Mr Aditi has not replied to various queries put by us, implying that she/ he is not interested to take our advices. This is just unprofessional from an HR person.

Madhu T K
11th November 2017 From India, Kannur
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