According to Section 4 in The Payment of Gratuity Act, 1972
Provided that the completion of continuous service of five years shall not be necessary where the termination of the employment of any employee is due to death or disablement.
Please make a note that the time period of over 6 month or more is consider as 1 year i.e. the year of service rounded off the nearest integer.
For example- If you have completed the 5 year 7 month in the services, the length of service for gratuity calculation would be 6 years. Similarly, if you have completed the 5 year 5 month, the period for gratuity calculation would be 5 years.
According to Section 4 A in The Payment of Gratuity Act, 1972
-It is mandatory where no.of employees is more than 500 then every employer has to obtain an Insurance for payments towards the gratuity from LIC under the Lic of India Act, 1956 or any other prescribed Insurer
In such cases, the deceased will be eligible for gratuity till his date of actual retirement.
Regards,
Amit