Gratuity Dilemma: Is a Worker Who Died Accidentally After 8 Months Eligible?

Dear sirs, One of our workers, when he was on leave, died accidentally by drowning in water. He had rendered only 8 months' service in our company. Now, kindly tell me whether he is eligible for Gratuity under The Payment of Gratuity Act, 1972.

Thanks & Regards

Yes, if your establishment is covered by the Payment of Gratuity Act, his dependents should be paid gratuity. Since his length of service is only eight months, the amount of gratuity will be 15 days of average salary.

On the other hand, if you have taken any death cum gratuity policy from any insurance company, the insurers will pay him gratuity based on a formula that will enable the dependents to receive service benefits extended to the deceased employee's date of retirement.