Dear Seniors,
Kindly intimate if an employee complete 6 years and 7 months service, what is his eligibility of Gratuity? Is it 7 years to be taken for calculating Gratuity? or Is it 6.5 years for calculating Gratuity?
The confusion has come due to Para 2 (b) of Gratuity Act which define for calculating 6 months service for calculation Gratuity?
Kindly advice.
Thanks
With regards,
Mohan Kumar
From India, Bangalore
9Kindly intimate if an employee complete 6 years and 7 months service, what is his eligibility of Gratuity? Is it 7 years to be taken for calculating Gratuity? or Is it 6.5 years for calculating Gratuity?
The confusion has come due to Para 2 (b) of Gratuity Act which define for calculating 6 months service for calculation Gratuity?
Kindly advice.
Thanks
With regards,
Mohan Kumar
From India, Bangalore
There is no para 2(b) pf POG Act.It is Sec 2(b). In the above case it is 7 years.Read sec 4(2) also. Varghese Mathew
From India, Thiruvananthapuram
From India, Thiruvananthapuram
Dear Mohan Kumar,
Thank you very much for helping me to increase by numbers of posting. You are requested to view below given link.
https://www.citehr.com/462480-gratuity.html
From India, Mumbai
Thank you very much for helping me to increase by numbers of posting. You are requested to view below given link.
https://www.citehr.com/462480-gratuity.html
From India, Mumbai
You are eligible for 6 years and 7 months only for the gratuity. As per " The Payment of Gratuity Act, 1972", under section 4 - Sub section ( 2 ) , For every completed year of service or part thereof in excess of Six months. since you have completed balance 6 months i.e upto to 7 months, you are eligible for 7 months. Had you completed only 6 year & 4 months, then you would have been eligible for only 6 years.
From India, Madras
From India, Madras
sorry, previously I had told that you are eligible only for 6 years and 7 months but later after undergoing the depth meaning of Section 4 (2 ),
you are eligible for 7 year gratuity. 6 month and above even 1 day extra after six months, you are eligible for 1 year gratuity.
From India, Madras
you are eligible for 7 year gratuity. 6 month and above even 1 day extra after six months, you are eligible for 1 year gratuity.
From India, Madras
[Dear Mohan,
As per your query, Para 2 (b) of Gratuity Act which define for calculating 6 months service for calculation Gratuity?
Is in line to the section 4 Para sub section (2) that "For every completed year of service or part thereof in excess of six months, the employer shall pay gratuity to an employee "
Where the 6 Month of service shall be be deemed to be a Continuous period of service has actually worked under the employer for not less than--
(i) ninety- five days, in the case of an employee employed below the ground in a mine or in an establishment which works for less than six days in a week; and
(ii) one hundred and twenty days, in any other case; 3[ Explanation.-- For the purposes of clause (2), the number of days on which an employee has actually worked under an employer.
Hope this will clear your query.
Suraj Biswal
From India, Bhubaneswar
As per your query, Para 2 (b) of Gratuity Act which define for calculating 6 months service for calculation Gratuity?
Is in line to the section 4 Para sub section (2) that "For every completed year of service or part thereof in excess of six months, the employer shall pay gratuity to an employee "
Where the 6 Month of service shall be be deemed to be a Continuous period of service has actually worked under the employer for not less than--
(i) ninety- five days, in the case of an employee employed below the ground in a mine or in an establishment which works for less than six days in a week; and
(ii) one hundred and twenty days, in any other case; 3[ Explanation.-- For the purposes of clause (2), the number of days on which an employee has actually worked under an employer.
Hope this will clear your query.
Suraj Biswal
From India, Bhubaneswar
Dear Sir,
Your reply made clear on calculation of 6 month period of service. Now I understood that the 240 days will count only for eligibility of Gratuity (completion of five years). In all other cases if he has completed 6 months as per Sec 2(b) the Gratuity will be counted for another one year.
Thank you for your good advice.
With Regards,
Mohan Kumar
From India, Bangalore
Your reply made clear on calculation of 6 month period of service. Now I understood that the 240 days will count only for eligibility of Gratuity (completion of five years). In all other cases if he has completed 6 months as per Sec 2(b) the Gratuity will be counted for another one year.
Thank you for your good advice.
With Regards,
Mohan Kumar
From India, Bangalore
Dear Mohan Kumar,
After 5 years of completion of service, the outgoing member will become eligible for remmittence of gratuity. And beyond 5 years if extended period is more than six month shall be read as one year more. In your case it will be 7 years eligibility.
Hope it is cristal clear.
With Regards
V K Sharma
Tarapur
After 5 years of completion of service, the outgoing member will become eligible for remmittence of gratuity. And beyond 5 years if extended period is more than six month shall be read as one year more. In your case it will be 7 years eligibility.
Hope it is cristal clear.
With Regards
V K Sharma
Tarapur
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Payment of Gratuity Act, 1972 & The Rules.ppt
THE PAYMENT OF GRATUITY ACT 1972.doc