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 fifty thousand, the amount payable shall be rupees fifty thousand plus 40 per cent of the amount in excess of rupees fifty thousand subject to a ceiling of rupees One Lakh.
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.
(2-A) 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, who was in the employment of the same establishment for a continuous period of twelve months, preceding the month in which he died, the persons entitled to receive the provident fund accumulations of the deceased shall, in addition to such accumulations be paid an amount, equal to-
(i) The average monthly wages drawn (subject to a maximum of rupees six thousand five hundred) during the twelve months preceding the moth in which he died, multiplied by twenty times, or;
(ii) the amount of benefit under sub-paragraph (1), whichever is higher.
Explanation: In the case of a part-time employee who is a member of the Fund or a Provident Fund exempted under Section 17 of the Act, as the case may be, who was serving in more than one factory or establishment for a continuous period of twelve months, preceding the month in which he died, the quantum of benefit under this Scheme shall be determined with reference to the aggregate of all the wages wherever he was continuously working for more than twelve months, subject to the wage ceiling of Rupees six thousand five hundred.
Death of Employee
