Reg. Gratuity Calculation In Death Cases

1 of our employees has passed away in an accident, and his tenure in the company was 1 year or more. Is he eligible for gratuity, and if yes, how do we calculate it?

Under provision 1 to Section 4(1), the provision of continuous service of 5 years shall not be necessary where the termination of employment happened due to death or disablement. In case of death, the amount of gratuity shall be paid to the nominee. If no nomination was made, gratuity shall be paid to the heir. If the nominee or heir is a minor, then the amount of gratuity shall be submitted to the controlling authority. The minor can use this fund when they attain majority.

For the calculation part, refer to the [Payment of Gratuity Act, Rules, Forms, Returns & All Other Information](http://www.shramsamadhan.com/p/payment-of-gratuity-act-rules.html) as there are many contributing factors that cannot be stated here.

Yes, he is eligible for gratuity. The calculation should be as follows: Basic + DA / 26 x 15 days x 1 year.

In addition to what our learned members have already stated, if your company has a policy with LIC and the risk premium has been paid, the employee will receive Gratuity until their superannuation if they are alive. In other words, the year of superannuation will be calculated as the difference between the year of superannuation and the date of joining.