Dear Professionals,
I am P T NAIDU working for a Private Limited company in Hyderabad. I am going to resign for my services very soon. Before of that i would like to know how much Gratuity fund i will get.
My service length is 20 Years 9 months. We can treat it as 21 years. My basic salary was 16000/- per month.
In best of my knowledge, i will get as shown below:
16000/26 days X 15 days X 21 years =193846/- .
But, one of colleague who joined recently with us told me one more point .
If any employee completed his service more than 15 years in the same organisation, that organisation has to pay full one month BASIC+ DA per year. That it will be as shown below:
16000 X 21 Years = 336000/-.
Is it true or false? i request all the professionals here to kindly confirm actual act and kindly provide me a copy of justification or GO.
Thank you everyone in advance.
P T NAIDU
From India, Hyderabad
I am P T NAIDU working for a Private Limited company in Hyderabad. I am going to resign for my services very soon. Before of that i would like to know how much Gratuity fund i will get.
My service length is 20 Years 9 months. We can treat it as 21 years. My basic salary was 16000/- per month.
In best of my knowledge, i will get as shown below:
16000/26 days X 15 days X 21 years =193846/- .
But, one of colleague who joined recently with us told me one more point .
If any employee completed his service more than 15 years in the same organisation, that organisation has to pay full one month BASIC+ DA per year. That it will be as shown below:
16000 X 21 Years = 336000/-.
Is it true or false? i request all the professionals here to kindly confirm actual act and kindly provide me a copy of justification or GO.
Thank you everyone in advance.
P T NAIDU
From India, Hyderabad
As per your calculation, the value of Gratuity is correct, provided you have considered the wages as per the definition provided under section 2(s) of the POG Act.
Apart this, there is no such rule what your friend has highlighted so far as the Payment of Gratuity Act is concerned. Though you may please check your Company's policy or the standing order or any agreement to this respect between the Employee and the employer or any Co.'s circular; As if this is the case then for sure the Gratuity value is higher than the usual course and under section 4 sub-section 5 of the Payment of Gratuity Act, the employee is eligible to get the higher amount of Gratuity.
From India, Kolkata
87Apart this, there is no such rule what your friend has highlighted so far as the Payment of Gratuity Act is concerned. Though you may please check your Company's policy or the standing order or any agreement to this respect between the Employee and the employer or any Co.'s circular; As if this is the case then for sure the Gratuity value is higher than the usual course and under section 4 sub-section 5 of the Payment of Gratuity Act, the employee is eligible to get the higher amount of Gratuity.
From India, Kolkata
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Payment of Gratuity Act, 1972 & The Rules.ppt
THE PAYMENT OF GRATUITY ACT 1972.doc