You will need to check first whether there is any Group Gratuity Fund created for your organization with any insurance company. The terms under such a scheme will need to be examined.
While the above calculation suggested by Mr. Nagarkar and Mr. Lakhera is as per the Gratuity Act, some companies, while creating the Gratuity Fund, incorporate a provision in the rules of the scheme which has additional benefits in a death case. For instance, we have created a Gratuity Fund with LIC which incorporates a provision that if an employee dies while on duty, the Gratuity calculation will also take into consideration the unserved years of service until his retirement. That is, if an employee of 30 years dies, his date of joining is 2012, and the retirement age is 55, then the calculation of gratuity includes calculation as per 5 years of service rendered plus the remaining 25 years of service remaining.
Hence, ascertain what policies are framed under your company's Gratuity Fund.