S.P.Chauhan
dear seniors
I have one question about Gratuity
that is how to calculate Gratuity in death case whereas employee has less than five year of service in the organization.
please guide and give me formula or any section of law in this regard

From India, Mumbai
saiseven
54

Dear Chauhan

Supposing an employee died afterserving 4 years and 3 months, his gartuity shall be calculated as under

15 days wages (to be calculated on the basis of last drawn wages) X 4

Note- Three months to be ignored since it is less than six months)

Supposing an employee died afterserving 4 years and 7 months, his gartuity shall be calculated as under

15 days wages (to be calculated on the basis of last drawn wages) X 5

Note- Seven months is taken as one year since the part of service is more than six months)

you can also search google for relevant material and e-books on this subject.

Supposing an employee died afterserving 4 years and 7 months, his gartuity shall be calculated as under

15 days wages (to be calculated on the basis of last drawn wages) X 5

Note- Seven months is taken as one year since the part of service is more than six months)

B.Saikumar

HR & labour Law Consultant

Chipinbiz Consultancy Pvt.ltd

Mumbai

022-28324234

you can also search google for relevant material and e-books on this subject.

From India, Mumbai
9289341077
but sir, what if the person died after searving 3year and 5months? How will the calculation be do about gratuity!
and second doubt is related to ignorance of 3 months of services of the above mentiond case by mr.sp chauhan
kindly resolve it! I become little confuse!

From India, Bangalore
atulmalve
24

Hi,
As per section 4 (1) of The Payment of Gratuity Act 1972, In case of death, the employee becomes eligible for Gratuity benefits even though his services are less than 5 years. Accordingly, you need to calculate his gratuity @ the specified rates of calculation for three years only. i.e. 15 days / year x nos. of years completed service.
As per section 4 (2) of THe Payment of Gratuity Act 1972, every completed year of service or part thereof excess than six months shall be deemed to be a year for the calculation of Gratuity. hence the service less than 6 months shall not be considered for computing one year of service of an employee.
Regards,

From India, Sholapur
Anuj Trivedi
25

Dear Mr. Chouhan,
In case of death of an employee we can pay gratuity to his/her nominee only in case when employee has already completed minimum one year of service in organisation. As per Gratuity Act we have to take nomination in Form F after completition of one year of service of every employee. So minimum one year of service is required to pay gratuity in case of death of employee.
Regards,
Anuj Trivedi

From India, Lucknow
lancymenezes
4

Dear Seniors,
Please advise on the following -
- Is Gratuity payable to a probationer who died in a fatal accident in the fifth month of his employment service?
- Is Gratuity payable to a confirmed employee who died in a fatal accident in the fifth month of his employment service?
- Is Gratuity payable to a confirmed employee who died in a fatal accident in the eighth month of his employment service?
WISHING EACH ONE OF YOU A VERY HAPPY AND PROSPEROUS NEW YEAR 2012.
I sincerely await earliest response.
Regards,
Lancy Menezes
Manager - HR Administration

From India, Mumbai
atulmalve
24

Hi,
In above all cases, the employee, who may be a probationer or confirmed, comes under the definition of the Employee under The Payment of Gratuity Act, 1972 is eligible for getting Gratuity benefits. However in case of probationer or confirmed, since their services are less than six months, they will not be eligible for Gratuity benefits. But in last case, the confirmed employee who has completed his service more than six months and it comes under the contineous service for becoming eligible for gratuity, he will be eligible for getting Gratuity benefits for a year only i.e. for 15 days only.
Regards,

From India, Sholapur
rldhingra
23

hi all
happy new year .
As per the provision of sub-section 1 of Section 4 of P.G Act 1972 the conditions of completition of five year is not necssary . The amount of Gratuity be calculated accordingly.r. Atul S Malve Manager HR & Admin is very correct.
Thanks & regards
RL Dhingra , Advocatem
Labour Law Consultant, Delhi
09818309937/E-mail:

From India, Delhi
aniljambhulkar
1

Dear All, This is related to employee who died. But if the employee who left the organization after 3 yrs and 9 month, will he be eligible for graduity. Thanks & Regards, anil
From India, Pune
lancymenezes
4

Dear Anil,
It is very clear that a departing employee who has resigned & has not completed a minimum of 5 years (special case 4 years 240 days) will NOT be eligible to receive gratuity payment.
Regards,
Lancy Menezes

From India, Mumbai
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