Hi, Please guide me, how to calculate the gratuity in death case one who completed his 3 months of services. and let me know the eligibility criteria to get gratuity in case of death.
From India, Bhatinda
Acknowledge(0)
Amend(0)
10From India, Bhatinda
Acknowledge(0)Amend(0)
Dear Divya,
The gratuity formula will remain the same, i.e. basic salary + DA * (15/26) * the number of years.
In this case, you will have to consider one year to process the gratuity. The minimum period of 5 years applies in the event of an employee's death. Therefore, the employee is still entitled to gratuity even in your situation.
Regards,
Ashutosh Thakre
From India, Mumbai
Acknowledge(0)Amend(0)
The gratuity formula will remain the same, i.e. basic salary + DA * (15/26) * the number of years.
In this case, you will have to consider one year to process the gratuity. The minimum period of 5 years applies in the event of an employee's death. Therefore, the employee is still entitled to gratuity even in your situation.
Regards,
Ashutosh Thakre
From India, Mumbai
Acknowledge(0)Amend(0)
In a death case, gratuity is only paid after completion of 1 year of service. No gratuity is paid before 1 year. The Gratuity Nomination Form is filled out after one year, indicating that there is no gratuity before the completion of 1 year.
The PF and ESI Nomination form is filled out on the first day of joining; thus, PF and ESI contributions are payable from the very first day. Any thoughts on this difference, please share.
Regards,
Dinesh Kumar
From India, New Delhi
Acknowledge(0)Amend(0)
The PF and ESI Nomination form is filled out on the first day of joining; thus, PF and ESI contributions are payable from the very first day. Any thoughts on this difference, please share.
Regards,
Dinesh Kumar
From India, New Delhi
Acknowledge(0)Amend(0)
The company has already provided for the gratuity in the CTC from day one. Therefore i think the payment is to be made.
From India, Mumbai
Acknowledge(0)Amend(0)
From India, Mumbai
Acknowledge(0)Amend(0)
Gratuity is to be paid to an employee who dies before completing the qualifying service of five years. However, the Act is silent with respect to any minimum service in the case of death. For the purpose of calculation of the amount of gratuity, a service period extending six months shall mean one year, whereas service of less than six months shall be ignored. Therefore, if the deceased had worked for at least six months and a day, his dependents would have received gratuity calculated at the rate of 15 days' wages/salary. However, in a death case, even if the service of one day is considered, the gratuity will not exceed what one should receive for one year, i.e., 15 days' salary.
The Payment of Gratuity Act has made it obligatory on the part of the employer to obtain nominations from all employees who have completed one year of service. The purpose behind this provision is that if any employee dies, his dependents/nominees should receive gratuity without facing difficulties. If the employer is to provide gratuity to dependents of a deceased employee who worked for less than one year or two months, as in the instant case, there could have been a provision that nominations should be collected from an employee as and when he joins the establishment, similar to ESI or EPF. In the absence of it, and since there is a provision that nominations are to be collected from employees who have completed one year of service, the question of payment of gratuity to dependents of an employee who died before completing one year of service is uncertain.
Regards,
Ashutosh Thakre
From India, Mumbai
Acknowledge(0)Amend(0)
The Payment of Gratuity Act has made it obligatory on the part of the employer to obtain nominations from all employees who have completed one year of service. The purpose behind this provision is that if any employee dies, his dependents/nominees should receive gratuity without facing difficulties. If the employer is to provide gratuity to dependents of a deceased employee who worked for less than one year or two months, as in the instant case, there could have been a provision that nominations should be collected from an employee as and when he joins the establishment, similar to ESI or EPF. In the absence of it, and since there is a provision that nominations are to be collected from employees who have completed one year of service, the question of payment of gratuity to dependents of an employee who died before completing one year of service is uncertain.
Regards,
Ashutosh Thakre
From India, Mumbai
Acknowledge(0)Amend(0)
Dear All,
I have queries regarding gratuity. It is calculated based on 15 days. I know the formula, but can we calculate gratuity based on 20 or 30 days? I have heard that it is possible if the person has completed 10 or 20 years of service. Please help me with this as it is urgent.
Regards,
Monali
From India, Pune
Acknowledge(0)Amend(0)
I have queries regarding gratuity. It is calculated based on 15 days. I know the formula, but can we calculate gratuity based on 20 or 30 days? I have heard that it is possible if the person has completed 10 or 20 years of service. Please help me with this as it is urgent.
Regards,
Monali
From India, Pune
Acknowledge(0)Amend(0)Looking for something specific? - Join & Be Part Of Our Community and get connected with the right people who can help. Our AI-powered platform provides real-time fact-checking, peer-reviewed insights, and a vast historical knowledge base to support your search.
Minimum Qualifying service for Gratuity under the Payment of Gratuity Act.docx
Circular Dated 28-10-2016 for settlement of PF Death Case Claims within 7 days.pdf