The same formula should be used for death cases as well, i.e., 15 days' salary for every year of service. Here, the deceased had only one year of service, and the fraction of two months shall be ignored. Had it been more than six months, we should have rounded it upwards and made it 2 years of service. You can find the average salary by dividing the salary by 26 and then multiplying it by 15. This is the salary payable.
If you have taken any death cum gratuity policy from LIC, then LIC will pay the gratuity amount, calculated based on the presumption of the length of service until retirement age. The gratuity qualifying salary would also be subject to inflation according to the length of service. This would provide more benefits to the dependents.