Respected Seniors,
The Payment of Gratuity Act, 1972 specifies a minimum continuous service of 5 years to be eligible for gratuity benefits but is silent on the maximum number of years of service. It simply mentions the amount of the Gratuity limit to be Rs. 10 lakh.
Does this mean that a person who has more than 33 years of service, in the present case 37 years, is eligible for gratuity? This would be computed as follows:
salary X 15/26 x 37 = gratuity amount, and the amount of gratuity is within the prescribed limit of Rs. 10 lakh as amended by the notification dated May 24, 2010.
Kindly guide.
Regards,
Harminder
From India, Delhi
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1The Payment of Gratuity Act, 1972 specifies a minimum continuous service of 5 years to be eligible for gratuity benefits but is silent on the maximum number of years of service. It simply mentions the amount of the Gratuity limit to be Rs. 10 lakh.
Does this mean that a person who has more than 33 years of service, in the present case 37 years, is eligible for gratuity? This would be computed as follows:
salary X 15/26 x 37 = gratuity amount, and the amount of gratuity is within the prescribed limit of Rs. 10 lakh as amended by the notification dated May 24, 2010.
Kindly guide.
Regards,
Harminder
From India, Delhi
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An employee is entitled to the entire service without any maximum limit, put in by him until the date of retirement to be counted for gratuity, provided that if the amount exceeds Rs. 10 lakhs, he is eligible only for 10 lakhs.
B. Saikumar
HR & Labour Law Advisor
Mumbai
From India, Mumbai
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B. Saikumar
HR & Labour Law Advisor
Mumbai
From India, Mumbai
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Thanks Mr. Saikumar! I have further researched various judgement. This calculation formula is also applicable under Industrial Dispute Act. regards Harminder
From India, Delhi
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From India, Delhi
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If a person who had 30 years of service on retirement date is given 4 more years extension without break will he get Gratutity for 34 four years?
From India, Chennai
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From India, Chennai
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In my view, if the extension is in continuation of the existing tenure of service and he retires after 34 years of service, he should get gratuity for 34 years.
B. Saikumar
HR & Labour Law Advisor
Navi Mumbai
From India, Mumbai
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B. Saikumar
HR & Labour Law Advisor
Navi Mumbai
From India, Mumbai
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Respected Members,
I am employed in a tea company that operates several tea estates and factories. A significant number of our staff and workers have dedicated 35 to 40 years of service.
As we are aware, the minimum requirement for eligibility to receive gratuity is 5 years. However, the question that arises is whether there exists a "maximum limit on the length of service" for gratuity payment.
I would greatly appreciate a clear response, including any relevant legal judgments, if available.
Thank you,
Mahesh Khandelwal
+918017099070
From India, Calcutta
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I am employed in a tea company that operates several tea estates and factories. A significant number of our staff and workers have dedicated 35 to 40 years of service.
As we are aware, the minimum requirement for eligibility to receive gratuity is 5 years. However, the question that arises is whether there exists a "maximum limit on the length of service" for gratuity payment.
I would greatly appreciate a clear response, including any relevant legal judgments, if available.
Thank you,
Mahesh Khandelwal
+918017099070
From India, Calcutta
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