Expert of the Act is as follows:-
4. Payment of Gratuity.- (1) Gratuity shall be payable to an employee on
the termination of his employment after he has rendered continuous service for
not less than five years,-
(a) on his superannuation, or
(b) on his retirement or resignation,
(c) on his death or disablement due to accident or disease:
Provided that the completion of continuous service of five years shall not be
necessary where the termination of the employment of any employee is due to
death or disablement:
1[Provided further that in case of death of the employee, gratuity payable to
him shall be paid to his nominee or, if no nomination has been made, to his
heirs, and where any such nominees or heirs is minor, the share of such minor,
shall be deposited with the Controlling Authority who shall invest the same for
the benefit of such minor in such bank or other financial institution, as may be
prescribed, until such minor attains majority].
Explanation.- For the purposes of this section, disablement means such
disablement as incapacitates an employee for the work which he was capable of
performing before the accident or disease resulting in such disablement.
(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:
Provided that in the case of a piece-rated employee, daily wages shall be
computed on the average of the total wages received by him for a period of three
months immediately preceding the termination of his employment, and, for this
purpose, the wages paid for any overtime work shall not be taken into account:
Provided further that in the case of
2[an employee who is employed in a
seasonal establishment, and who is not so employed throughout the year], the
employer shall pay the gratuity at the rate of seven days' wages for each season.
3[Explanation.-In the case of a monthly rated employee, the fifteen days'
wages shall be calculated by dividing the monthly rate of wages last drawn by
him by twenty-six and multiplying the quotient by fifteen.]
(3) The amount of gratuity payable to an employee shall not exceed 4[ten
lakh rupees].
(4) For the purpose of computing the gratuity payable to an employee who is
employed, after his disablement, on reduced wages, his wages for the period
preceding his disablement shall be taken to be the wages received by him during
that period, and his wages for the period subsequent to his disablement shall be
taken to be the wages as so reduced.
(5) Nothing in this section shall affect the right of an employee to receive
better terms of gratuity under any award or agreement or contract with the
employer.
From India, Madras
2944. Payment of Gratuity.- (1) Gratuity shall be payable to an employee on
the termination of his employment after he has rendered continuous service for
not less than five years,-
(a) on his superannuation, or
(b) on his retirement or resignation,
(c) on his death or disablement due to accident or disease:
Provided that the completion of continuous service of five years shall not be
necessary where the termination of the employment of any employee is due to
death or disablement:
1[Provided further that in case of death of the employee, gratuity payable to
him shall be paid to his nominee or, if no nomination has been made, to his
heirs, and where any such nominees or heirs is minor, the share of such minor,
shall be deposited with the Controlling Authority who shall invest the same for
the benefit of such minor in such bank or other financial institution, as may be
prescribed, until such minor attains majority].
Explanation.- For the purposes of this section, disablement means such
disablement as incapacitates an employee for the work which he was capable of
performing before the accident or disease resulting in such disablement.
(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:
Provided that in the case of a piece-rated employee, daily wages shall be
computed on the average of the total wages received by him for a period of three
months immediately preceding the termination of his employment, and, for this
purpose, the wages paid for any overtime work shall not be taken into account:
Provided further that in the case of
2[an employee who is employed in a
seasonal establishment, and who is not so employed throughout the year], the
employer shall pay the gratuity at the rate of seven days' wages for each season.
3[Explanation.-In the case of a monthly rated employee, the fifteen days'
wages shall be calculated by dividing the monthly rate of wages last drawn by
him by twenty-six and multiplying the quotient by fifteen.]
(3) The amount of gratuity payable to an employee shall not exceed 4[ten
lakh rupees].
(4) For the purpose of computing the gratuity payable to an employee who is
employed, after his disablement, on reduced wages, his wages for the period
preceding his disablement shall be taken to be the wages received by him during
that period, and his wages for the period subsequent to his disablement shall be
taken to be the wages as so reduced.
(5) Nothing in this section shall affect the right of an employee to receive
better terms of gratuity under any award or agreement or contract with the
employer.
From India, Madras
After completion of 5 years service additional more than 6 months counted for one year and less than 6 months ignore for calculating service period,we are bound to implement this formula as per gratuity Act.So the 5.7 years shall be counted for 6 years ,not five years.
From India, Jalandhar
From India, Jalandhar
After completion of 5 years service additional more than 6 months counted for one year and less than 6 months ignore for calculating service period,we are bound to implement this formula as per gratuity Act.So the 5.7 years shall be counted for 6 years ,not five years.
From India, Jalandhar
From India, Jalandhar
In gratuity act, for 6 months continuous service is defined by 120 days working including leave, weekly off, paid holiday, absent without leave. In such scenario even on 5.4 years, staff eligible for 6 years gratuity. Needs clarity on it.
After completion of 5 years service additional more than 2 months. Will I get my Gratuity in consolidated Salary. This is my consolidated Salary Rs.11525/- per month.
From India, Mumbai
From India, Mumbai
Dear Manisha,
You will get gratuity for 5 years i.e.
Basic+DA x 15/26 x 5 = your gratuity amount. You have mentioned that you are getting consolidated salary of Rs.11,525/- (is there any bifurcation such as Basic, HRA, other allowance or any other allowance? if yes, you will get gratuity on Basic salary x above formula) if not, your gratuity will be as under:
11525 x 15/26 x 5 = 33,245 based on your above statement.
Regards,
Suresh
From India, Thane
You will get gratuity for 5 years i.e.
Basic+DA x 15/26 x 5 = your gratuity amount. You have mentioned that you are getting consolidated salary of Rs.11,525/- (is there any bifurcation such as Basic, HRA, other allowance or any other allowance? if yes, you will get gratuity on Basic salary x above formula) if not, your gratuity will be as under:
11525 x 15/26 x 5 = 33,245 based on your above statement.
Regards,
Suresh
From India, Thane
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