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Dear All,
One of our employee is died with in 3 years of service due to ill health, whether the individual is eligibility for gratuity, if so, how to calculate the gratuity, i want to refer the gratuity act to settle the same. kindly guide me.
Regards
Sathish Kumar M R
HR, Bangalore.

From India, Bangalore
Dear Satish Kumar ji,
Answer to your question is - Yes, provided the POG Act is applicable to your company.
Calculation is as under:
Last drawn salary ( B+DA) pm divided by 26 multiply by 15 (days) multiply by 3 years.

From India, Mumbai
You refer the first proviso to sec 4(1) ,and explanation under sec4(2) of POG Act.for the answer. Varghese Mathew
From India, Thiruvananthapuram
Dear Satish,
Please refer to Section 4 of the Payment of Gratuity Act,1972 where it has been mentioned that the completion of continuous service of five years shall not be necessary where the termination of the employment is due to the death or disablement. As such the payment of gratuity shall be payable to his nominee or legal heir, as the case may be. Our respectable member Sh.Keshav Korgaonkar has rightly suggested the formula to calculate the amount of gratuity in respect of the deceased.
BS Kalsi
Member since Aug 2011

From India, Mumbai
Dear Mr. Satish,
Continuous service of Minimum five years is compulsory to claim gratuity. How ever it is not necessary in the case of death of the employee, in which case one service is sufficient to claim gratuity. Accordingly the answer to your doubt is that the employee is eligible to gratuity. His nomineecan claim it. The formula to calculate the gratuity is: Salary(Basic+DA) *No. of completed years of service* 15/26 or 30/52.For the meaning of completed years of service, you can refer the Factories Act.
D. Phani Kumar
DGM- HR
Vasavadatta Cement
(B.K. Birla Group of Companies)
Sedam, Gulbarga Dist,
Karnataka.


Dear Mr. Satish,
I clarify that one year of continuous service is sufficient to claim gratuity in case of death,
D. Phani Kumar
DGM- HR
Vasavadatta Cement
(B.K. Birla Group of Companies)
Sedam, Gulbarga Dist,
Karnataka.
attribution https://www.citehr.com/458291-gratui...#ixzz2RXOA073h


Dear Mr. Satish,
As per the provisions of The Payment of gratuity Act, the deceased ( nominee will get compensation amount) is eligible to get gratuity, since it is a case of death. For details pls refer the provisions of Sec 4 of the said Act.
Regarding calculation part, Mr. Korgaonkarji has rightly explained the same.
Hope this is suffice to clarify your points .
Thks,
AK SHARMA

From India, Pune
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