Employee Passed Away: Is Gratuity Due and How Should It Be Calculated?

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?

Gratuity Eligibility and Payment Process

Under provision 1 to Section 4(1), the requirement of continuous service for 5 years is waived if the termination of employment occurs due to death or disablement. In the event of death, the gratuity amount shall be paid to the nominee. If no nomination was made, the gratuity shall be paid to the heir. If the nominee or heir is a minor, the gratuity amount shall be submitted to the controlling authority. The minor can access this fund upon reaching the age of 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.