Gratuity Dilemma: How Do We Calculate Benefits After an Employee's Passing?

Hi, Good Morning All. Can anyone suggest the following case? One of our employees died while in service at the age of 54. Should we calculate his gratuity until the closure of his service (retirement) or until the date of death? It will be really helpful if anyone can guide me in this matter.

Thanks & Regards, Nethra. K

The legal requirement is to pay gratuity by calculating the period of service until the date of death. If you pay up to the date of retirement, the extra amount paid will be a voluntary benefit extended by you.

In this case, legally, providing gratuity up to retirement is required.

Hi, gratuity payment should be calculated only until the date of death. For companies that have a tie-up with LIC under a Group Gratuity scheme, if they have opted for a special rider option, then LIC will pay gratuity until the retirement date of the deceased.

@ Delbinraja-J and Mr. V.M. Lakshminarayanan, Thank you for your valuable reply. We have tied up with LIC under the Group Gratuity Scheme. We will discuss with them regarding the Special Rider option. Once again, thank you.