Death Gratuity Eligibility and Calculation: Can Someone Explain the Basics and Process?

Death gratuity eligibility and calculation

Hello all, I am an Associate HR Executive in a company. I have some doubts regarding death gratuity. Kindly let me know the basic eligibility for death gratuity. How is it calculated? What is the process? Is it affected by insurance or not?

Termination of employment due to the death of an employee

Termination of employment due to the death of an employee does not require the minimum qualifying service of continuous five years in the establishment. Whatever the actual length of service rendered by the deceased up to the date of death and the last drawn salary [Basic + D.A only] should be taken into account for the computation of the amount of gratuity under the Payment of Gratuity Act, 1972. It is the normal practice whether there is insurance for gratuity or not.

Impact of insurance on gratuity payment

However, if the employer has taken an insurance policy with life cover up to the age of superannuation of the employees on payment of an additional premium in this regard, the amount of gratuity payable up to the date of superannuation would be paid by the insurer even in case of death in the meantime.