I have completed 6 years, 6 months, and 12 days in a company. So, what period will be considered for gratuity calculation? Will it be considered rounding up to 7 years, or will it be considered 6.5 years? Please help me with this. Also, share the formula for calculation.
From India, Pune
From India, Pune
Hi, Yes, it will be rounding up for 7 yrs. Please find the Gratuity Formula for your reference.. No of Yrs *26/15*Last Withdrawn Basic Salary
From India, Bengaluru
From India, Bengaluru
Since it is six years + more than six months,total service is considered as seven years.
From India, Thiruvananthapuram
930From India, Thiruvananthapuram
Dear Aniket,
For more clarity regarding the basis of rounding off of service for calculation of gratuity, you can refer to Section 4(2) of the Payment of Gratuity Act which envisages that "4(2) For every completed year of service or part thereof in excess of six months, the employer shall pay gratuity to an employee at the rate of fifteen days' wages based on the rate of wages last drawn by the employee. In your case, the part in excess of six months is 6 months 12 days, and hence it would be treated as a completed year.
Regards,
From India, Delhi
For more clarity regarding the basis of rounding off of service for calculation of gratuity, you can refer to Section 4(2) of the Payment of Gratuity Act which envisages that "4(2) For every completed year of service or part thereof in excess of six months, the employer shall pay gratuity to an employee at the rate of fifteen days' wages based on the rate of wages last drawn by the employee. In your case, the part in excess of six months is 6 months 12 days, and hence it would be treated as a completed year.
Regards,
From India, Delhi
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(Fact Checked)-The user reply is correct based on Section 4(2) of the Payment of Gratuity Act, where any part of a year over six months is considered a full year for gratuity calculation. (1 Acknowledge point)