Shyam Agrawal
22

Thanks for detailed explanation, Shri Madhu Ji.
Different firms have their own benevolent welfare rules. In such cases (death before one year), the Food Corporation of India, a Government of India undertaking was paying 3 months salary (basic pay + dearness allowance) as gratuity. In the absence of proper nomination, the payment of gratuity can be arranged to legal heir or next of kin.

From India, Pune
Shyam Agrawal
22

Dear Shri Sethupathy Ji,
Thanks for detailed explanation. If I were rash in my conclusion, I am sorry. For death of employee after very short duration service, different firms have their own welfare rules for payment of sizable amount of gratuity. The payment will go to the next of kin. Thanks once again.

From India, Pune
deepakuniyal
Dear Sirs,
As per my knowledge following are the parameters for calculating of gratuity in the event of death:-
a) during Ist year of service - 2 months emoluments
b) after one year but before 5 years - 6 months emoluments
c) after completion of 5 years service but before 20 years service - 12 months emoluments.
d) after 20 years service or more - Half a months emoluments for completed half year of qualifying service, subject to a maximum of 33 times the emoluments provided the amount of death grauity shall in no case exceed Rs. 10 lac.
Deepak Uniyal
THDC India Ltd.

From India, Dehra Dun
Madhu.T.K
4242

The above parameters are not as per Payment of Gratuity Act., yet it may be the rules as per your Standing Orders and since it is more beneficial to the employee it will prevail over the payment of Gratuity Act.
From India, Kannur
essykkr
87

Dear Madhu,
it seems to me very funy about the Payment of Gratuity Act in case of death. The Act specify even if an employee died before completion of one week or two week of his service, the dependant will be able to get only a megre amount. then what is the use to keeping this clause. if this clause if there then the parliament should have considereded either an figure of amount to be payable to dependent.
Completion of 5 years is not necessary legislator should think about it and at least provide some amount in case of death after joining and before completion of 5 years.


Madhu.T.K
4242

Death referred in Payment of Gratuity Act includes death outside the purview of employment injury or accident. In case death had happened while on duty, in addition to the megre amount of gratuity, the dependents will be entitled to get compensation as per Employees Compensation Act. That is to be paid by the employer or ESIC if the deceased was covered by ESI Act. I don't think that just due to giving employment to an employee he should be made liable to compensate death which did not take place while on duty.
Regards,
Madhu.T.K

From India, Kannur
Govind Desai
4

Please give the reference Section and para where it is mentioned that the Gratuity is to be paid till the retirement age in case of death person. Some employer's give upto his service period. please mail me on
From India, Mumbai
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