Gratuity Entitlement for Deceased Employee: Can His Family Receive Benefits Before 5 Years?

Hello, my dear friends! Can you help me with a query? After joining an organization, a friend of mine passed away while still in service. When he died, he had worked for around 2 years in the company. My question to you is, will he be entitled to gratuity benefits as he died on the job? Also, if the gratuity account is held by any insurance company, will he be entitled to any extra special benefits?

Please let me know, as the family is in financial need, and all avenues of receiving funds are being explored.

Thank you in advance,

Barnali Sengupta

Yes, with two years of service, the bereaved family will receive gratuity (roughly a little more than a month's salary). If the service is more than 6 months, then the gratuity entitlement goes up by a year. Please check that. The possibility of any extra amount from insurance would depend on the policy taken for the purpose. The HR department would be in a position to clarify it.

Sorry to hear about your friend.

Gratuity Entitlement in Case of Death

About this five-year requirement, this does not apply in the case of death. Hence, his family will receive a gratuity amount. It does not matter if an insurance company is managing the fund or not.

Minimum Gratuity Amount

The law specifies the minimum gratuity amount. However, the employer may choose to pay more than that.