How to calculate gratuity benefits for a death case? Are there any criteria that need to be followed? To whom should the claim amount be settled?
We have a death case involving an employee who worked for 1 year and 3 months. The employee joined in August 2019 and passed away on December 22, 2020.
Please calculate and confirm the figure and guide us on how to proceed further.
From India, Bengaluru
Acknowledge(0)
Amend(0)
We have a death case involving an employee who worked for 1 year and 3 months. The employee joined in August 2019 and passed away on December 22, 2020.
Please calculate and confirm the figure and guide us on how to proceed further.
From India, Bengaluru
Acknowledge(0)Amend(0)
You have to pay gratuity to his/her legal heir. Gratuity payable up to his date of retirement i.e. = date of birth - date of retirement (number of years). Example: if his date of birth is 1.1.1990 and retirement age of your company is 58 years, the age of retirement will be 2048. Date of joining in your company is August 2019, hence he will be entitled to gratuity of 29 years. Basic + DA / 26 * 15 * number of years (service).
Alim Khan
From India, Nagpur
Acknowledge(0)Amend(0)
3Alim Khan
From India, Nagpur
Acknowledge(0)Amend(0)
Dear Raju-Gowda,
Based strictly on the provisions of Section 4 of the Payment of Gratuity Act, 1972, I am quite unable to understand and accept the answer given by our friend Alim Khan. I think that the Special Group Gratuity Insurance Policy covering the whole life up to 58 years of age of the insured employees on payment of additional premium would have come to his mind when he drafted his reply.
As per the first proviso to Subsection (1) of Section 4 of the PGA, 1972, only the minimum qualifying service of 5 years is not applicable to the case of an employee dying in harness within 5 years of service in the establishment. You can calculate and pay the gratuity to the deceased employee's nominee or legal heirs in the absence of nomination for the one-year service he actually rendered as per Section 4(2) of the Act. If your management is magnanimous, a more substantial amount can also be paid.
In the absence of nomination, it is always better to deposit the gratuity amount payable with the Controlling Authority under the Act for the area for disbursement under intimation to the legal heirs.
From India, Salem
Acknowledge(0)Amend(0)
Based strictly on the provisions of Section 4 of the Payment of Gratuity Act, 1972, I am quite unable to understand and accept the answer given by our friend Alim Khan. I think that the Special Group Gratuity Insurance Policy covering the whole life up to 58 years of age of the insured employees on payment of additional premium would have come to his mind when he drafted his reply.
As per the first proviso to Subsection (1) of Section 4 of the PGA, 1972, only the minimum qualifying service of 5 years is not applicable to the case of an employee dying in harness within 5 years of service in the establishment. You can calculate and pay the gratuity to the deceased employee's nominee or legal heirs in the absence of nomination for the one-year service he actually rendered as per Section 4(2) of the Act. If your management is magnanimous, a more substantial amount can also be paid.
In the absence of nomination, it is always better to deposit the gratuity amount payable with the Controlling Authority under the Act for the area for disbursement under intimation to the legal heirs.
From India, Salem
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.
Circular Dated 28-10-2016 for settlement of PF Death Case Claims within 7 days.pdf
PF Death case Composite Claim Form No 20,10D & 5IF.xls