Let me Know the basic eligibility of death gratuity? How it is Calculated? What is the Process?

Prachee Shah
Hello All, I am Associate HR Executive in Company. I have some doubts regarding death gratuity. Kindly Let me Know the basic eligibility of death gratuity? How it is Calculated? What is the Process? Whether it is affected by Insurance or not?
umakanthan53
Termination of employment due to 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 computation of the amount of gratuity under the PGA,1972. It is the normal practice whether there is an insurance for gratuity or not. However, if the employer has taken an insurance policy with life cover up to the age of superannuation of the employees on payment of 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 mean time.
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