Gratuity Calculation After Employee's Passing: How Should HR Handle This Situation?

Dear All,

I am working in an automobile company in the HR/Admin department. My question is, if an employee passes away after leaving the company premises at the end of their duty, and their nominee claims for Gratuity/other benefits, how do I calculate the Payment of Gratuity?

Manoj Jee

Dear Manoj,

The nominee is eligible to claim the gratuity. Please find the enclosed file of the gratuity calculation; it may help you.

Regards,
Santhosh

Dear Manoj,

In case of death, the legal heirs of deceased employees are entitled to receive gratuity. The length of service does not have any concern with the calculation. The calculation is done as follows:

Basic + DA * Number of years of service * 15, then divide by 26.

Regards,
J. S. Malik

Dear Manoj,

During the death of an employee, Payment of Gratuity will be handed over to the nominee upon submission of relevant documents. Payment of Gratuity = (Basic + DA) * Number of Years of Service * 15 / 26. The Basic should be the last drawn basic salary.

Note:

Payment of Gratuity is applicable when the employee works for 240 days per year. If the employee works less than 240 days, the gratuity payable depends on the sector he/she is employed in. For example, in the Mining Sector, it will be 120 days or more.

It is applicable when an employee has rendered continuous service for five years.

Breakups are considered, and it is evaluated based on temporary, permanent disablement, and so on.

Please let me know if you need any further assistance.

Thank you.

Regards