Dear Friends, The caleculation for Gratuity is very easy: BASIC + DA (Last Pay drawn) X 15 /26 X No.OF YEARS WORKS. Clarification please see the attatchment Regards, PBS KUMAR
From India, Kakinada
590From India, Kakinada
i am sory to correct you. but with my whole reseach on it and goin thru the act it is said that if employee has completed 240 days of the fifth year then he is eligible to get gratuity for 5 years.
thanks
ally
thanks
ally
As per the provisions prevalent in Payment of Gratuity Act, 1972, an employee becomes eligible for gratutity after completion of 5 years service. You are very right in this aspect. As asked by you whether person who have completed 4 years six months will be eligible for gratuity or not. Since, the employee has not completed five years, hence not eligible for gratuity at all according to the provision exists in the Act.
GK Sharma
MA, LL.B, PGDPM & LW
GK Sharma
MA, LL.B, PGDPM & LW
DEAR MR SHARMA, KINDLY GUIDE ME ON DELAYED PAYMNET OF GRATUTY BY 1 YEAR, IS THEER ANY PENALTY ? INTEREST(AS PER THE ACT YES) ? IF YES WHAT IS THE RATE OF INTEREST OR PENELY. REGARDS JOSEPH
From India, Mumbai
From India, Mumbai
Under the Payment of Gratuity Act, 1972, an empolyee becomes elegible for gratuity at the rate of 15 days per year after the completion of five years.
So, you are very right that the minimum length of services for payment of gratutity is 5 years.
The period 4.6 years can not be treated as five years. Hence not elegible for the gratutity.
(G K Sharma)
So, you are very right that the minimum length of services for payment of gratutity is 5 years.
The period 4.6 years can not be treated as five years. Hence not elegible for the gratutity.
(G K Sharma)
I am in a similar situation , i have resigned and on my handing over day am completing 4yrs 6 months 10 days, now i am anxoius to know am i eligible for gratuty or else it is mandatory to complete 5yrs , rounding off is only for calculation of the amount.
From India, Bangalore
From India, Bangalore
Hi,
Pls note completion of 240 days of continued service is MUST to avail gratuity. Also an employee becomes eligble under conditions specified in the act (Ref Mr. Santosh`s post above)
Be it training period / probation period / maternity leave / paid holidays / compensatory holidays - all are taken into consideration for this purpose.
Pls correct if I am wrong.
-Saravana Rajan. S
From India, Mumbai
Pls note completion of 240 days of continued service is MUST to avail gratuity. Also an employee becomes eligble under conditions specified in the act (Ref Mr. Santosh`s post above)
Be it training period / probation period / maternity leave / paid holidays / compensatory holidays - all are taken into consideration for this purpose.
Pls correct if I am wrong.
-Saravana Rajan. S
From India, Mumbai
Hi Praveen, If an employee leaves anytime between 4.6 years to 5yrs, it will also be considered as 5yrs of service for the purpose of calculating of Gratuity.
From India, Mumbai
From India, Mumbai
Hi As per Act / Gratuity Calculation If a person complets 4.5 Yrs of service He/ She is eligible for Gratuity . If pls refer Regards Ramlingam.V
From India, Madras
From India, Madras
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Gratuity calculation.doc
Gratuity Eligibility.pdf
Gratuity Calculation tool.xls