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Payment of Gratuity Act

Section 4: Payment of gratuity


(1) Gratuity shall be payable to an employee on the termination of his employment after he has
rendered continuous service for not less than five years,(a) on his superannuation, or
(b) on his retirement or resignation, or
(c) on his death or disablement due to accident or disease :
Provided that the completion of continuous service of five years shall not be necessary where the
termination of the employment of any employee is due to death or disablement :
Provided further that in the case of death of the employee, gratuity payable to him shall be paid to
his nominee or, if no nomination has been made, to his heirs, and where any such nominees or
heirs is a minor, the share of such minor, shall be deposited with the controlling authority who
shall invest the same for the benefit of such minor in such bank or other financial institution, as
may be prescribed, until such minor attains majority.

Payment of Gratuity (Central) Rules


Section 7: Application for gratuity
(i) An employee who is eligible for payment of gratuity under the Act, or any person authorised in
writing, to act on his behalf,shall apply, ordinarily within thirty days from the date the gratuity
became payable,in Form I to the employer:
Provided that where the date of superannuation or retirement of an employee is known, the
employee may apply to the employer before thirty days of the date of superannuation or
retirement.
(2) A nominee of an employee who is eligible for payment of gratuity under the second proviso to
sub-section (1) of section 4 shall apply, ordinarily within thirty days from the date the gratuity
became payable to him, in Form 'I' to the employer:
Provided that an application on plain paper with relevant particulars shall also be accepted. The
employer may obtain such other particulars as may be deemed necessary by him.
(3) A legal heir of an employee who is eligible for payment of gratuity under the second proviso to
sub-section (1) of section 4 shall apply, ordinarily within one year from the date the gratuity
became payable to him in Form 'K' to the employer.
(4) Where gratuity becomes payable under the Act before the commencement of these rules, the
periods of limitation specified in sub-rules (1), (2) and (3) shall be deemed to be operative from
the date of such commencement.
(5) An application for payment of gratuity filed after the expiry of the periods specified in this rule
shall also be entertained by the employer, if the applicant adduces sufficient cause for the delay
in preferring his claim, and no claim for gratuity under the Act shall be invalid merely because the
claimant failed to present his application within the specified period. Any dispute in this regard
shall be referred to the controlling authority for his decision.
(6) An application under this rule shall be presented to the employer either by personal service or
by registered post acknowledgment due.

Employees Deposit Linked Insurance Scheme


Section 22: Scales of assurance benefits and the minimum average balance to be
maintained by an employee.
On the death of an employee, who is a member of the Fund or of a provident fund exempted
under Section 17 of the Act, as the case may be, the persons entitled to receive the provident
fund accumulations of the deceased shall, in addition to such accumulations be paid an amount,
equal to the average balance in the account of the deceased in the Fund or of a Provident Fund
exempted under Section 17 of the Act, as the case may be , during preceding twelve months or
during the period of his membership, whichever is less, except where the average balance
exceeds rupees thirty-five thousand, the amount payable shall be rupees thirty-five thousand plus
25 per cent of the amount in excess of rupees thirty-five thousand subject to a ceiling of rupees
sixty thousand.
Explanation 1.-For the purpose of determining the average balance in the Fund or in the
Provident Fund exempted under Section 17 of the Act, as the case may be, in relation to any
employee, the sum total of contributions by the employee and the employer, due for and up to the
relevant period, whether paid or unpaid in the Fund or in the Provident Fund exempted under
Section 17 of the Act, as the case may be, together with interest thereon, shall be included.
Explanation 2.-The period of twelve months for calculation of benefits under this Scheme shall be
computed backwards from the month preceding the months in which death of the member
occurs.
(2) In the case of a part-time employee who was a member of the Fund or of a provident fund
exempted under Section 17 of the Act, as the case may be while serving in more than one factory
or establishment the quantum of benefit under this Scheme shall be determined with reference to
the average of the aggregate balance in all his account in the Fund or of Provident Fund
exempted under Section 17 of the Act, as the case may be, during the preceding twelve months.

Section 23: Assurance benefit to whom payable


(1) The nomination made by an employee under the Employees Provided Fund Scheme, 1952 or
under the Provident Fund exempted under Section 17 of the Act, as the case may be shall be
treated as nominations under this Scheme and the assurance amount shall become payable to
such nominee or nominees.
(2) If no nomination subsists or if the nomination relates only to part of the amount standing to his
credit in the Fund or of a provident fund exempted under Section 17 of the Act, as the case may
be, the whole amount or the part thereof to which the nomination does not relate, as case may be
shall become payable to the members of his family in equal shares:
Provided that no share shall be payable to(a) sons who have attained majority;
(b) sons of a deceased son who have attained majority;
(c) married daughters whose husbands are alive;
(d) married daughters of a deceased son, whose husbands are alive; if there is any member of
the family other than those specified in clauses (a), (b), (c) and (d):
Provided further that the widow or widows, and child or children of a deceased son shall receive
between them in equal parts only the share which that son would have received if he had
survived the employee and had not attained the age of majority at the time of his death.

(3) In any case to which the provision of sub-paragraph (1) and (2) do not apply the whole
amount shall be payable to the person legally entitled to it.
(4) If a person who is eligible to receive assurance Scheme benefit of the deceased member in
terms of sub-paragraph (1), (2) or (3) is charged with the offence of murdering the member or for
abetting in the commission of such an offence, his claim to receive assurance benefit shall remain
suspended till the conclusion of the criminal proceedings instituted against him. If on the
conclusion of the criminal proceedings the person concerned is :(a) convicted for the murder or abetting in the murder of the member, he shall be debarred from
receiving his share of deposit-linked assurance benefit which shall be payable to other eligible
members if any of the family; or
(b) acquitted of the charge of murdering or abetting in the murder of the member, his share shall
be payable to him .
Explanation .- For the purpose of this paragraph an employees posthumous child, if born alive
shall be treated in the same way as a surviving child born before his death.

Employees Pension Scheme


Section 16: Benefits to the family on the death of a member
(1) Pension to the Family shall be admissible from the date following the date of death of the
member if the member dies(a) while in service, provided that at least one months contribution has been paid into the
Employees Pension Fund; or
(b) after the date of exit but before attaining the age of 58, from the employment having rendered
service entitling him/her to monthly members pension but before the commencement of pension
payment or
(c) after commencement of payment of the monthly members pension.
Note.- The cases where a member has rendered less then 10 years eligible service on the date of
exit but has retained the membership of the Pension Fund, and dies before attaining the age of
58 years, shall be regulated under sub-paragraph (8) of Paragraph 12.
(2) (a) The monthly widow pension shall be(i) in the cases covered by clause (a) of sub-paragraph (1) equal to the monthly members
pension which, would have been admissible as if the member had retired on the date of death or
Rs 450 or the amount indicated in Table C whichever is more;
(ii) in the cases covered by clause (b) of sub-paragraph (1) equal to the monthly members
pension which would have been admissible as if the member had retired on the date of exit or Rs
450 per month or the amount indicated in Table C whichever is more;
(iii) in the cases covered by clause (c) of sub-paragraph (1), equal to 50 per cent of the monthly
members pension payable to the member on the date of his death subject to a minimum or Rs
450 per month.
(b) The monthly widow pension shall be payable up to the date of death of the widow or
remarriage whichever is earlier.
Note.- In cases where there are 2 or more widows, family pension shall be payable to the eldest
surviving widow. On her death it shall be payable to the next surviving widow,if any. The term
eldest would mean seniority with reference to the date of marriage.
(3)Monthly children pension:
(a) If there are any surviving children of the deceased member, falling within the definition of
family, they shall be entitled to a monthly children pension in addition to the monthly

widow/widower pension.
(b) Monthly children pension for each child shall to be equal to 25 per cent of the amount
admissible to the widow/widower of the deceased member as monthly widow pension payable
under sub-paragraph (2) (a)(i) provided that minimum monthly children pension for each child of
the deceased member shall not be less than Rs 150 per month.
(c) Monthly children pension shall be payable until the child attains the age of 25 years.
(d) The monthly children pension shall be admissible to maximum of two children at a time and
will run from the oldest to the youngest child in that order.
(e) If a member dies leaving behind a family having son or daughter who is permanently and
totally disabled such son or daughter shall be entitled to payment of monthly children pension or
orphan pension, as the case may be, irrespective of age and number of children in the family in
addition to the pension provided under clause (d).
(4) (a) If the deceased member is not survived by any widow but is survived by children falling
within the definition of family or if the widow pension is not payable, the children shall be entitled
to a monthly orphan pension equal to 75 per cent of the amount of the monthly widow pension as
payable under sub-paragraph (2)(a)(i) provided that minimum monthly orphan pension for each
orphan shall not be less than Rs 250 per month.
(b) In the event of death or remarriage of widow/widower after sanctioning of widow/widower
pension the children shall be entitled in lieu of the monthly children pension, to monthly orphan
pension form the date following the date of death/remarriage of the widow/widower.
(c) The monthly orphan pension shall be admissible to a maximum of two orphans at a time and
shall run in order form the oldest to the youngest orphan.
(5) (a) A member who is not married or who does not have any living spouse and/or an eligible
child may nominate a person to receive benefits as laid down hereinafter provided that in the
event of his/her acquitting a family subsequently, the nomination so made shall become void. In
the event of death of the member such a nominee shall be entitled to receive a monthly pension
equal to the monthly widow pension, as admissible under sub-clauses (i) and (ii) of clause (a) of
sub-paragraph (2).
(aa) If a member dies leaving behind no spouse and/or an eligible child falling within the definition
of family and no nomination by such deceased member exists, the widow pension shall be paid
under sub-clauses (i) and (ii) of clause (a) of sub-paragraph (2) either to dependent father or
dependent mother as the case may be.On grant of pension to such dependent father and in the
event of death of the father pensioner, the admissible pension shall be extended to the surviving
mother life long.
(b) If the deceased member had not rendered pensionable service on the date of exit from the
employment which would have made him entitled to a monthly members pension under
Paragraph 12,but had opted to retain the membership of this Scheme under sub-paragraph (8) of
Paragraph 12,the nominee or the dependent father or the dependant mother, as the case may be
shall be entitled to return of capital as provided in sub-paragraph (1) of Paragraph 13.

Employee State Insurance (General) Regulations


Chapter: Dependants Benefit
Section 77: Report of death of insured person by employment injury
In case of death of an insured person as a result of an employment injury(a) if the death occurs at the place of employment the employer shall, and
(b) if the death occurs at any other place, a dependant intending to claim dependants benefit
shall, or
(c) any other person present at the time of death may,
immediately report the death to the nearest Branch Office and to the nearest dispensary, hospital,
clinic or other institution where medical benefit under the Act is available.

Chapter: Dependants Benefit


Section 78: Disposal of body of an insured person dying by employment injury
Where an insured person dies as a result of an employment injury sustained as an employee
under the Act, the body of the insured person shall not be disposed of until the body has been
examination by an Insurance Medical Officer, who will also arrange a post-mortem examination, if
considered necessary, in co-operation with any other existing agency:
Provided that if an Insurance Medical Officer is unable to arrive for the examination within 12
hours of such death the body may be disposed of after obtaining a certificate from such medical
officer or practitioner as may be available:
Provided further that nothing contained in this regulation shall be in derogation of any power
conferred on a Corner under any law for the time being in force or on the officer-in-charge of a
police station or some other police officer under Section 174 of the Code of Criminal Procedure,
1973 (2 of 1974).

Chapter: Dependants Benefit


Section 81: Notice for dependants benefit
On receipt of a claim or claims for dependants benefit in respect of the death of an insured
person and, after making such inquiries as may be necessary about the circumstance and cause
of death and about all person who may be entitled to dependants benefit, the appropriate
Regional Office shall issue by registered post to such other persons, if any, as appear on enquiry
to be entitled to dependants benefit, and who have not yet submitted a claim for such benefit a
notice for submission of claims for dependents benefit within a period of 30 days from the date of
such notice. The notice shall indicate inter alia the relevant provisions of the Act and regulations
and the procedure for submission of a claim for dependants benefit.

Chapter: Medical Benefit To Families


Section 95-A: Medical benefit to families of insured persons
(1) Medical benefit may be extended to the families of insured persons from such date as the
Corporation may, in consultation with State Government ,notify.
(2) The family of an insured person shall become entitled to medical benefit from the day the
insured person himself becomes entitled to medical benefit and shall continue to be so entitled so
long as the insured person is entitled to receive medical benefit for himself, or in the case of
death of the insured person till such date up to which the insured person would have remained
entitled to medical care had he survived.
(3) The nature and scale of medical benefit to which the family of an insured person shall be
entitled shall be such as may be specified by the State Government in consultation with the
Corporation from time to time.
(4) The appropriate office shall arrange to add in Form 4, Form 4-A the particulars of the family
entitled to medical benefits.

Chapter: Funeral Expenses


Section 95-E: Submission of claim for Funeral Expenses
(1) A claim to funeral expenses shall be submitted to the appropriate Bracnch Office by post or
otherwise in Form 22 by the claimant entitled under the Act and in case of a minor, by his

guardian, and such claim shall be supported by documents proving (i) the death of the deceased person,
(ii) that the person claiming is the eldest surviving member of the family of the deceased insured
person and incurred the expenditure necessary for the funeral of the deceased, or
(iii) in case the claimant is other than the eldest surviving member of the family(a) that the deceased insured person did not have a family or that the deceased insured person
was not living with his family at the time of his death; and
(b) that the claimant actually incurred the expenditure claimed on the funeral of the deceased
insured person :
Provided that where the appropriate office is satisfied about the bona fides of the applicant or
about the truth of the facts relating to any of the matters mentioned above, one or more of the
documents may be dispensed with.
(2) The following may be accepted as proof for purposes of clauses (ii) and (iii) of sub-regulation
(1) of this regulationA declaration of the claimant duly countersigned by(i) an officer of the Revenue, Judicial or Magisterial Departments of Government; or
(ii) a Municipal Commissioner; or
(iii) a Workmans Compensation Commissioner; or
(iv) the Head of Gram Panchayat under the official seal of the Panchayat; or
(v) the employer of the deceased Insured person ; or
(vi) any other evidence or declaration acceptable to the appropriate office in the circumstances of
a particular case.

Minimum Wages Act


Section 22-D: Payment of undisbursed amounts due to employees
All amounts payable by an employer to an employee the amount of minimum wages of the
employee under this Act or otherwise due to the employee under this Act or any rule or order
made thereunder shall, if such amounts could not or cannot be paid to the employee on account
of his death before payment or on account of his whereabouts not being known, be deposited
with the prescribed authority who shall deal with the money so deposited in such manner as may
be prescribed.