How to calculate gratuity for Dead employee who worked 4 years in our company?

Udhayasooriyan K
Our employee worked 4 years in our company. He was died. How to to calculate gratuity for him.
Nagarkar Vinayak L
Dear colleague,
For deceased employee , gratuity is payable from the date of joining till date of death.
Since the concerned deceased employee has put in 4 years' service, his gratuity is to be calculated as follows:
Last drawn salary ÷26 days =1 day'ssalary × 15×4 = gratuity payable.
Regards,
Vinayak Nagarkar
HR-Consultant
Naveen lakhera
Yes is will be Last drawn salary(Basic +DA) *15/26 * no, of year worked .
Thanks
MT52
Hi Udayasooriyan,
You will need to check first whether there is any Group Gratuity Fund created for your Organisation with any Insurance Company . The terms under such Scheme will need to be examined.
While the above calculation suggested by Mr.Nagarkar & 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 have additional benefit in a death case.
For instance , we have created a Gratuity Fund with LIC which incorporates as provision that if an employee dies while on duty, the Gratuity calculation will also take into consideration the unserved years of service till his retirement. ie if an employee of 30 years dies, his date of joining is 2012 and the retirement age is 55 then calculation of gratuity includes calculation as per 5 yrs service rendered plus remaining 25 years of service remaining.
Hence ascertain what policies are framed under your Company's Gratuity Fund.
My father die after completing 58years service his last salary was 38450 ..then gratuity will receive to his family....He was himachal Pradesh govt employee...please calculate
Nagarkar Vinayak L
Dear Colleague,
His gratuity as per the Act will be:
38450÷26=1 day salary ×15× no of years of service completed ( count 1 year for service in excess of six months).
You need to take into account the age of retirement and if it is 60 years , he will get gratuity up to the age of retirement provided the gratuity scheme is linked with LIC and the scheme contains such a clause.
Check if govt of Himachal Pradesh has different Gratuity scheme
Regards
Vinayak Nagarkar
HR- Consultant
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