Understanding Gratuity Eligibility and P.F. Withdrawal Process in Case of Death: Can You Help?

Hi All,

Please help me to know:
1. The eligibility for Gratuity.
2. P.F. Withdrawal procedure in case of death.

Hi,

After 5 years of confirmation of a job, with all eligible leaves and holidays, an employee is eligible to claim gratuity. It is calculated on a 26-day basis, based on Basic and DA.

Franklyne

You should consider The Payment of Gratuity Act, 1972. Go through the link; you may find it useful. [The Payment of Gratuity Act, 1972](http://www.netlawman.co.in/acts/payment-gratuity-act-1972.php)

Gratuity: Eligibility to receive gratuity is a minimum of 5 years of service. The calculation of wages is based on 15 days' wages for every completed year, assuming the month comprises 26 days, at the last drawn wages. The maximum ceiling is Rs. 3,50,000.

PF withdrawal in the case of death:
The nominee of the deceased worker/employee must submit the necessary papers through the factory/company to the Provident Fund Commissioner. (G K Sharma)

Most people are of the view that gratuity is payable only if the employee has completed 5 years of continuous service with a company. However, there are two more conditions under which the company is bound to pay gratuity to its employees: a) in case the employee dies on duty, and b) in case the employee is totally disabled while on the job. You can refer to the Payment of Gratuity Act for more information. Nowadays, LIC also covers the payment of gratuity for employees. I invite the comments of my seniors to correct me if I am wrong.

Regards,
Komal

Dear [Recipient],

If a person has worked for 4 years and 245 days, they shall be eligible for the payment of Gratuity. In the case of death before completing 5 years, the individual shall still be eligible for gratuity. Gratuity is calculated as follows: Last Basic + DA divided by 26, multiplied by the number of years of service, and then divided by two.

Please note that if in the last year the individual has worked for more than six months, it will be counted as a full year. However, if they have worked for less than six months, it will be ignored.

Kind regards,
Ak Malhotra

Hi,

An employee who has completed 5 years or 4 years and 240 working days without any break in service is eligible for Gratuity. The calculation of gratuity is: last drawn Basic * number of years / 26.

Reena