Please let me know if an employee dies within 1.4 years of working in the current company, will he be eligible for gratuity? If yes, until what age—58 or 60 years old—and in which states will it be applicable?
Act itself states that incase of death,5 year rule does not apply and person is entitled for gratuity for the period of service done before death.
From India, Pune
3251From India, Pune
Service gratuity is available only for the period of service until death. If your company has a Gratuity policy from LIC with a specific clause for death benefits, then only the dependents of the deceased will receive gratuity based on the superannuation age declared by the company. If there is no such policy, the gratuity payable will be limited to just 15 days' pay because the deceased had only worked for 1 year and 4 months, with the fraction of 4 months being ignored.
On the other hand, if your gratuity is invested in LIC and there is a death cum gratuity provision, LIC will calculate the gratuity the deceased would have been entitled to upon reaching their superannuation age of 58 or 60.
From India, Kannur
On the other hand, if your gratuity is invested in LIC and there is a death cum gratuity provision, LIC will calculate the gratuity the deceased would have been entitled to upon reaching their superannuation age of 58 or 60.
From India, Kannur
Dear Mr. Lalit Joshi,
His legal heirs are entitled to receive the gratuity at 15% for one year only for the service of one year and four months rendered by the employee, as the fraction of less than six months will not be considered under Section 4(2) of the Payment of Gratuity Act 1972.
D. Phani Kumar General Manager - HR Heidelberg Cement India Limited
From Singapore, Singapore
His legal heirs are entitled to receive the gratuity at 15% for one year only for the service of one year and four months rendered by the employee, as the fraction of less than six months will not be considered under Section 4(2) of the Payment of Gratuity Act 1972.
D. Phani Kumar General Manager - HR Heidelberg Cement India Limited
From Singapore, Singapore
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