Labour Law & Hr Consultant
Industrial Relations And Labour Laws
Sr. Hr Executive
Pan Singh Dangwal
Joint Manager
Sr.officer At J K Lakshmi Cement Ltd
Srinath Sai Ram
Hr Manager

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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
From India, Mumbai
Dear ADITI, you have been very casual in your Post.DOJ:14/05/2007 Date of Leaving:? Last Drawn Basic+DA+VDA:rS26,375/-
From India, New Delhi
Hi, In case of death gratuity calculation will be BASIC+DA/26*15*No of service till retirement.

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.

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

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

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

From India, Kannur
Dear Mr. Madhu
I have been seeing your mails from time to time and I appreciate your thoroughness and accuracy of advice. I am working as Head of HR/ IR/Admin in IMC Ltd (Chennai. My contact number is 9840365751 - email - please share your number and email id too so that I can be in touch with you).

From India, Chennai
Yes Mr Muthu,
Mr Madhu always provide valued advice on typical issues where a normal HR person can't comment. Moreover, he explained the matter in connection with the sections applies under the act/s. The language is always concise, to the point, professional and well explained.
There are other senior experts like Umakanth sir, Dr. PBS Kr., Mr Dinesh Divekar and many more who are spreading knowledge in the group through their valued suggestions on various matters.
On behalf of the junior members and other learned persons, I thanks to all the above and other senior person/s for their suggestions and ideas.

From India, Delhi
Thanks Muthu and Pan Singh for the appreciations. I am not sure whether I actually deserve it, I am sure that this would give me an added power. My contact No is 9847583239 and my mail id is
From India, Kannur
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