Understanding Gratuity Calculations When an Employee Passes Away: What Are the Rules?

pushkar.joshi91@gmail.com
Gratuity Calculation in Case of Employee Death

My query is regarding the gratuity calculation in the unfortunate event of an employee's death. The formula I am aware of is: Basic + DA * Completed years of service * 15/26. However, I have heard that there is a Supreme/High Court judgment stating that gratuity should be calculated as if the employee had retired from service.

For instance, if an employee joins the firm at the age of 25 and passes away at the age of 26, and the normal retirement age of the firm is 58, the gratuity would be paid to the nominees by assuming the employee had worked with the firm for 33 years (i.e., 58 - 25).

Can anyone provide clarity on this matter?
kprasoon
I have not come across any such Supreme Court ruling. I believe there is no ruling as such.

LIC Group Gratuity Scheme

The LIC Group Gratuity Scheme provides insurance coverage to employees for future service gratuity.

Regards,
Kamal
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