For deceased employee , gratuity is payable from the date of joining till date of death.
Since the concerned deceased employee has put in 4 years' service, his gratuity is to be calculated as follows:
Last drawn salary ÷26 days =1 day'ssalary × 15×4 = gratuity payable.
26th April 2018 From India, Mumbai
27th April 2018 From India, New Delhi
You will need to check first whether there is any Group Gratuity Fund created for your Organisation with any Insurance Company . The terms under such Scheme will need to be examined.
While the above calculation suggested by Mr.Nagarkar & Mr. Lakhera is as per the Gratuity Act, some Companies while creating the Gratuity Fund incorporate a provision in the Rules of the Scheme which have additional benefit in a death case.
For instance , we have created a Gratuity Fund with LIC which incorporates as provision that if an employee dies while on duty, the Gratuity calculation will also take into consideration the unserved years of service till his retirement. ie if an employee of 30 years dies, his date of joining is 2012 and the retirement age is 55 then calculation of gratuity includes calculation as per 5 yrs service rendered plus remaining 25 years of service remaining.
Hence ascertain what policies are framed under your Company's Gratuity Fund.
28th April 2018 From India, Mumbai
His gratuity as per the Act will be:
38450÷26=1 day salary ×15× no of years of service completed ( count 1 year for service in excess of six months).
You need to take into account the age of retirement and if it is 60 years , he will get gratuity up to the age of retirement provided the gratuity scheme is linked with LIC and the scheme contains such a clause.
Check if govt of Himachal Pradesh has different Gratuity scheme
8th February 2019 From India, Mumbai