To be eligible for gratuity, the first condition is that the employee should have completed a minimum of 5 years of continuous service; as per the Payment of Gratuity Act.
The calculation is as follows: Basic plus DA for the month divided by 26 multiplied by 15 and again multiplied by the number of years of service. The amount arrived at is the amount of Gratuity is Payable to the employee as per the Act.
Regards
From India, Mumbai
21The calculation is as follows: Basic plus DA for the month divided by 26 multiplied by 15 and again multiplied by the number of years of service. The amount arrived at is the amount of Gratuity is Payable to the employee as per the Act.
Regards
From India, Mumbai
Dear Mr Hari,
You are eligible for Gratuity as long as the Company read your attendance in-between the lines. i.e., if you were on some LOP during the 5 years period they may say deducting the LOP period resulting in less than the period of 5 years. This particularly some company may do mainly to avoid the gratuity payment. Kindly see this is not happen in your case. Otherwise strictly as per the rule you are eligible.
thanks - venkat - bangalore - 9945283007
From India, Bangalore
You are eligible for Gratuity as long as the Company read your attendance in-between the lines. i.e., if you were on some LOP during the 5 years period they may say deducting the LOP period resulting in less than the period of 5 years. This particularly some company may do mainly to avoid the gratuity payment. Kindly see this is not happen in your case. Otherwise strictly as per the rule you are eligible.
thanks - venkat - bangalore - 9945283007
From India, Bangalore
Mr. Subramanyam According to Payment of gratuity Act the formula for computation is total Years of service X (15/ total years of service) X (Basic Pay + DA)
From India, Madurai
From India, Madurai
Dear Hari,
In my experience and from your statement made by you, you are entitled for gratuity has you had completed five years of continuous service. First ask your higher concerned authority of your organisation to pay Gratuity after one month of your resignation. Wait for fifteen days send a reminder letter claiming Gratuity stating your date of joining and resigning. Wait for another fifteen days then send a letter stating that this is a notice asking to pay Gratuity. Then approach the Controlling Authority Under the Payment of Gratuity Act, 1972 of your jurisdiction likely to be the Labour Officer of the Government. Present all your evidence and Form 'N' supporting documents for your claim. I had successfully completed 5 cases in this manner. . .
From India, Pondicherry
In my experience and from your statement made by you, you are entitled for gratuity has you had completed five years of continuous service. First ask your higher concerned authority of your organisation to pay Gratuity after one month of your resignation. Wait for fifteen days send a reminder letter claiming Gratuity stating your date of joining and resigning. Wait for another fifteen days then send a letter stating that this is a notice asking to pay Gratuity. Then approach the Controlling Authority Under the Payment of Gratuity Act, 1972 of your jurisdiction likely to be the Labour Officer of the Government. Present all your evidence and Form 'N' supporting documents for your claim. I had successfully completed 5 cases in this manner. . .
From India, Pondicherry
Dear Subramanyam,
Gratuity will be calculated on the basis of recent drawn basic and the period of service using the following formulae;
Gratuity=Last drawn basic X No. of years of service X 15/26
Eligibilty for Gratuity:
5 years of continuous service (4 years & 240 days in the 5th year)
Regards,
S.N.Raju.U.
From India, Hyderabad
Gratuity will be calculated on the basis of recent drawn basic and the period of service using the following formulae;
Gratuity=Last drawn basic X No. of years of service X 15/26
Eligibilty for Gratuity:
5 years of continuous service (4 years & 240 days in the 5th year)
Regards,
S.N.Raju.U.
From India, Hyderabad
ear All,
My queries is slightly different. Our 15 workers ( all below 30 yeas of age) have completed 5 years and become eligible for the Gratuity. Company is doing well and there is no problem for paying their dues if anyone of them leave now. I am worried if some or all of them continue with the company till the retirement age and company may not be sound enough at that time to pay them their dues. Management is pro workers at present. Not sure of new generation next when they will take over the company. Ours is Pvt Ltd and having 40 to 50 workers and may go to 100 to 150 in coming few years.
How we can protect their interest? Is their any insurance linked with Gratuity? Can we pay them once they complete 5 years? Can we pay them on monthly basis also by calculating their gratuity? We need a solution which should go away from the system as expenses.
Further to inform everybody that our all the workers are not literate enough to understand all this. They do not want PF, ESIC. We pay their contribution also including PT. They want us to stop all and add the amount in their salaries. They need more cash in hand.
Regards,
Moorthy
HR
From India, Mumbai
My queries is slightly different. Our 15 workers ( all below 30 yeas of age) have completed 5 years and become eligible for the Gratuity. Company is doing well and there is no problem for paying their dues if anyone of them leave now. I am worried if some or all of them continue with the company till the retirement age and company may not be sound enough at that time to pay them their dues. Management is pro workers at present. Not sure of new generation next when they will take over the company. Ours is Pvt Ltd and having 40 to 50 workers and may go to 100 to 150 in coming few years.
How we can protect their interest? Is their any insurance linked with Gratuity? Can we pay them once they complete 5 years? Can we pay them on monthly basis also by calculating their gratuity? We need a solution which should go away from the system as expenses.
Further to inform everybody that our all the workers are not literate enough to understand all this. They do not want PF, ESIC. We pay their contribution also including PT. They want us to stop all and add the amount in their salaries. They need more cash in hand.
Regards,
Moorthy
HR
From India, Mumbai
we also had one Employee doj 13-03-2008 and he left on 12-11-2012 is it he is eligible for gratuity Ram
From India, Mumbai
From India, Mumbai
Dear Mr. Ram Your employee has put in less than 5 years of service and hence not eligible for any gratuity
From India, Mumbai
From India, Mumbai
The employee has compleated 4 yars and 7 months of service. if the employee has not taken Leaves without pay for more then 20 days then he will be eligible for Gratuity. as per HC decisions employee compeating 4 year and 6 moth is eligible. last six moths are considered as 1 year.
From India, Mumbai
From India, Mumbai
Find answers from people who have previously dealt with business and work issues similar to yours - Please Register and Log In to CiteHR and post your query.
Gratuity Eligibility.pdf
Gratuity eligibility for less than 5 yrs. (4yrs.240days). docx