Hi folks, I have a query. Suppose an employee joins an organization on 12/06/99. His salary details are given below: Basic: 13000, DA: 4000. The employee expires before completing five years of service. Can anybody tell me how much gratuity has to be paid to the nominee? Whether the Basic and DA will be taken as the same and gratuity will be calculated for the entire service period which the employee was supposed to complete.

Regards,
SLN

From India, Manipal
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dear he has to be paid gratuity for the service he has renendered.basic+DA will be taken into consideration while calculating gratuity. tks j s malik
From India, Delhi
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Dear friend,

In the case of the death of an employee, the 5-year continuous service criteria for the payment of gratuity is not required. Gratuity shall be paid up to the period the employee has worked before death.

Thanks,
Mahesh Pandey

From India, Calcutta
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Dear Plz do approach to L I C Office for further enquiry in the matter & for obtaining formats.
From India, Delhi
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First of all, let me clarify one thing: Is the gratuity fund maintained by the employer or by an outside agency such as LIC, etc.?

1. If the employee is maintaining it, they need to pay only for the services the employee has rendered (BASIC + DA should be considered for calculation purposes).

2. If it is managed by LIC or another insurance company, have you taken an insurance scheme or only gratuity? If there is insurance coverage, then the insurance company will pay the gratuity until the superannuation age.

I hope this is clear.

Siva

From India, Hyderabad
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Dear SLN Gratuity wil be applicable only when the employee completes his or her service for 5 years
From India, Pondicherry
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Dear In case of death of an employee this requirement of completion of 5 years is no there. Regards, R.N.Khola (Labour Law & Legal Consultants)
From India, Delhi
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