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Anonymous
To All respected HR professionals, I am resigning from my job on 30th November 2022, my joining date is 1st June 2005 – service period is 17.6 years. I would like to know how much gratuity I will get, for 17 years or 18 years. As per my understating of a few threads of gratuity on this forum, I should get gratuity for 18 years. Please guide and give suggestions (in case any dispute arises out of considering 6 months period round off)
From India, Pune
Kusum82
Dear All, please spare little time and guide me regarding gratuity . myself Kusum from Pune. Thanks
From India, Pune
KK!HR
1534

As per Section 4 (2) of the Payment of Gratuity Act 1072, gratuity is payable to an employee for every completed year of service or part thereof in excess of six months, at the rate of fifteen days' wages based on the rate of wages last drawn by the employee. So the obvious explanation is that the continuous service has to be in excess of six months, even if it is by a day, the gratuity is payable treating it as a completed year. The query states it to be 17 years and six months which cannot be treated as in excess of 17 years of service. So it appears to be only 17 years of continuous service.

It is said that the employee is resigning on 30th November. The continuous service would extend till the notice period is over and the employee is relieved of all duties and responsibilities. So it appears there could be scope for going beyond 17 years and six months of continuous service. Pl check.

From India, Mumbai
Kusum82
Thank you sir, I will check these possibilities .
From India, Pune
Kusum82
Dear Sir
This with reference to my earlier question . My joining date was 1 June 2005 and my resignation date is 9 of December 2022 . Total service period is 17 years , 6 months and 9 days . As per gratuity act and earlier discussion on this forum. This period should be considered as 18 years for gratuity calculation . But now my HR says it's only 17 years . If possible Please provide any legal references, documents copies so I can show her and make her understand. Thank you.

From India, Pune
KK!HR
1534

There is a clear provision of law in Section 4(2) of the PG Act 1972, read as follows:
4. Payment of Gratuity.- (1) Gratuity shall be payable to an employee .............
(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 concerned:
When there is a clear-cut provision of law, it does not require any judicial interpretation. As per the details shared, the entitlement is for 18 years of continuous service in this case.

From India, Mumbai
Kusum82
Dear sir, thanks for your reply. Yesterday I show these provision of law in Section 4(2) of the PG Act 1972, to HR. waiting for their reply on this matter. Thankyou again.
From India, Pune
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