Gratuity Payment in Case of Employee Death: How Is It Calculated for Short Service?

Dear Sir, What is the provision for gratuity payment calculation in a death case?

Example Scenario

One employee, aged 35, died due to natural causes, with a total service of 1 year in the organization. My question is, how many years of gratuity are payable as per the Act? Is it calculated until retirement or based on the year of service?

I would appreciate it if you could share the legal act documents.

Thanks,
Himmatsinh Zala

If the Gratuity Act is applicable to your establishment, you are liable to pay 1 year of gratuity to the employee who died while in service.

Hi, gratuity calculation remains the same. From the date of joining to the date of death, gratuity is calculated. If your establishment has any connection with an insurance company, then it would be the responsibility of the insurance company to pay the gratuity.