The formula for calculation of Gratuity is Basic salary + DA * 15 DAYS * No.of years of service/26 days regards prakash
From India, Madras
13From India, Madras
Please verfify the following:
In the third year that the employee did NOT complete 240 days of continuous employment, was the shortfall due to reasons which amount to break in service?
In this case yes he would be entitled to Gratuity after all he has completed more than five years' employment.
Vasant Nair
From India, Mumbai
In the third year that the employee did NOT complete 240 days of continuous employment, was the shortfall due to reasons which amount to break in service?
In this case yes he would be entitled to Gratuity after all he has completed more than five years' employment.
Vasant Nair
From India, Mumbai
Hi,
Gratuity is payable on rendering continuous service not less than five years. Sec.4(1)
The provisions of this sec. must be read with Sec2-A(2.a-ii) , which reads as follows:-
Where an employee( ..)is not in cont. service .for any period of one year or six months, he shall be deemed to be in cont. service under the employer
a) for the said period of one year , ..,has actually worked under the employer for not less than
i)
ii) two hundred and forty days , in any other case.
Conclusion : an employee rendering cont. service of 4 years and 11 months is entitled for Gratuity.
Case Law : This interpretation finds support in the following judgement.
Gist : In this case , the employee has served for 4yrs , 10 months and 18 days, which is definitely more than 240 days, He has ,therefore, put in 5 years service and is entitled to Gratuity.
- Mettur Breadsell Ltd. V. Reg. Lab. Com. , 1998(3) LLN 414 (Madras H.C.)
I.N.JHA
Gratuity is payable on rendering continuous service not less than five years. Sec.4(1)
The provisions of this sec. must be read with Sec2-A(2.a-ii) , which reads as follows:-
Where an employee( ..)is not in cont. service .for any period of one year or six months, he shall be deemed to be in cont. service under the employer
a) for the said period of one year , ..,has actually worked under the employer for not less than
i)
ii) two hundred and forty days , in any other case.
Conclusion : an employee rendering cont. service of 4 years and 11 months is entitled for Gratuity.
Case Law : This interpretation finds support in the following judgement.
Gist : In this case , the employee has served for 4yrs , 10 months and 18 days, which is definitely more than 240 days, He has ,therefore, put in 5 years service and is entitled to Gratuity.
- Mettur Breadsell Ltd. V. Reg. Lab. Com. , 1998(3) LLN 414 (Madras H.C.)
I.N.JHA
formula for Gratutiy is: Last drawn Basic * 15/26 * No. Of Years of Service. Some companies pay gratuity on the basis of 30 days instead of 15. it depends from company to company. Shikha
From India, Bangalore
From India, Bangalore
he will not eligible for gratuity because he haven’t complete 5 years continous service. Regards Charvaka Reddy
From India, Hyderabad
From India, Hyderabad
Dear All, Don’t Confusion, Read the below attachment which clear all doubts. Thanks Amit sharma
From India, Delhi
From India, Delhi
Hi, Greetings of the Day! please advise that the latest limit of Gratuity. Sher Singh(HR) 9891758004.
From India, New Delhi
From India, New Delhi
Dear All, Gratuity Calculation = {Lastdrawn(Basic+DA)*15*No.of years}/26 26 - no.of working days in a month 15 days after compeltion year of service Regards Charvaka Reddy
From India, Hyderabad
From India, Hyderabad
If the employees salary is structured in a CTC format what is the criteria of Gratuity payment, if the employee is terminated before compleeting 5 years? Would like to know the answer.
From India, Surat
From India, Surat
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Mettur Beardsell Ltd Vs RLC (Cent) & otrs 1998 LLR 1072 about Gratuity Entitlement.pdf
Gratuity Form I.doc