To be eligible for gratuity, the first condition is that the employee should have completed a minimum of 5 years of continuous service as per the Payment of Gratuity Act.
The calculation is as follows: Basic plus DA for the month divided by 26, multiplied by 15, and again multiplied by the number of years of service. The amount arrived at is the gratuity payable to the employee as per the Act.
Regards
From India, Mumbai
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23The calculation is as follows: Basic plus DA for the month divided by 26, multiplied by 15, and again multiplied by the number of years of service. The amount arrived at is the gratuity payable to the employee as per the Act.
Regards
From India, Mumbai
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Dear Mr. Hari,
You are eligible for gratuity as long as the company reads your attendance in between the lines. i.e., if you were on some leave without pay (LOP) during the 5-year period, they may deduct the LOP period, resulting in less than 5 years. Some companies may do this mainly to avoid gratuity payments. Please ensure this does not happen in your case. Otherwise, strictly as per the rules, you are eligible.
Thanks,
Venkat
Bangalore
9945283007
From India, Bangalore
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You are eligible for gratuity as long as the company reads your attendance in between the lines. i.e., if you were on some leave without pay (LOP) during the 5-year period, they may deduct the LOP period, resulting in less than 5 years. Some companies may do this mainly to avoid gratuity payments. Please ensure this does not happen in your case. Otherwise, strictly as per the rules, you are eligible.
Thanks,
Venkat
Bangalore
9945283007
From India, Bangalore
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Mr. Subramanyam According to Payment of gratuity Act the formula for computation is total Years of service X (15/ total years of service) X (Basic Pay + DA)
From India, Madurai
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From India, Madurai
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Dear Hari,
In my experience and from your statement, you are entitled to gratuity as you have completed five years of continuous service. Firstly, ask your higher authority in your organization to pay the gratuity after one month of your resignation. Wait for fifteen days, then send a reminder letter claiming the gratuity, stating your date of joining and resigning. After another fifteen days, send a letter stating that this is a notice asking for the payment of gratuity. Then approach the Controlling Authority under the Payment of Gratuity Act, 1972, in your jurisdiction, likely to be the Labour Officer of the Government. Present all your evidence and Form 'N' supporting documents for your claim. I have successfully completed 5 cases in this manner.
From India, Pondicherry
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In my experience and from your statement, you are entitled to gratuity as you have completed five years of continuous service. Firstly, ask your higher authority in your organization to pay the gratuity after one month of your resignation. Wait for fifteen days, then send a reminder letter claiming the gratuity, stating your date of joining and resigning. After another fifteen days, send a letter stating that this is a notice asking for the payment of gratuity. Then approach the Controlling Authority under the Payment of Gratuity Act, 1972, in your jurisdiction, likely to be the Labour Officer of the Government. Present all your evidence and Form 'N' supporting documents for your claim. I have successfully completed 5 cases in this manner.
From India, Pondicherry
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Dear Subramanyam,
Gratuity will be calculated based on the recently drawn basic salary and the period of service using the following formula:
Gratuity = Last drawn basic X Number of years of service X 15/26
Eligibility for Gratuity:
Employees must have completed 5 years of continuous service (4 years & 240 days in the 5th year).
Regards,
S.N. Raju. U.
From India, Hyderabad
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Gratuity will be calculated based on the recently drawn basic salary and the period of service using the following formula:
Gratuity = Last drawn basic X Number of years of service X 15/26
Eligibility for Gratuity:
Employees must have completed 5 years of continuous service (4 years & 240 days in the 5th year).
Regards,
S.N. Raju. U.
From India, Hyderabad
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Dear All,
My query is slightly different. Our 15 workers (all below 30 years of age) have completed 5 years and become eligible for gratuity. The company is doing well, and there is no problem for paying their dues if any of them leave now. I am worried if some or all of them continue with the company until the retirement age, and the company may not be sound enough at that time to pay them their dues. Management is pro-workers at present. I am not sure of the new generation next when they will take over the company. Ours is a Pvt Ltd company having 40 to 50 workers and may grow to 100 to 150 in the coming few years.
How can we protect their interests? Is there any insurance linked with gratuity? Can we pay them once they complete 5 years? Can we pay them on a monthly basis by calculating their gratuity? We need a solution that should move away from the system as expenses.
Furthermore, to inform everybody that all our workers are not literate enough to understand all this. They do not want PF, ESIC. We pay their contributions, including PT. They want us to stop all and add the amount to their salaries. They need more cash in hand.
Regards,
Moorthy
HR
From India, Mumbai
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My query is slightly different. Our 15 workers (all below 30 years of age) have completed 5 years and become eligible for gratuity. The company is doing well, and there is no problem for paying their dues if any of them leave now. I am worried if some or all of them continue with the company until the retirement age, and the company may not be sound enough at that time to pay them their dues. Management is pro-workers at present. I am not sure of the new generation next when they will take over the company. Ours is a Pvt Ltd company having 40 to 50 workers and may grow to 100 to 150 in the coming few years.
How can we protect their interests? Is there any insurance linked with gratuity? Can we pay them once they complete 5 years? Can we pay them on a monthly basis by calculating their gratuity? We need a solution that should move away from the system as expenses.
Furthermore, to inform everybody that all our workers are not literate enough to understand all this. They do not want PF, ESIC. We pay their contributions, including PT. They want us to stop all and add the amount to their salaries. They need more cash in hand.
Regards,
Moorthy
HR
From India, Mumbai
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we also had one Employee doj 13-03-2008 and he left on 12-11-2012 is it he is eligible for gratuity Ram
From India, Mumbai
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From India, Mumbai
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Dear Mr. Ram Your employee has put in less than 5 years of service and hence not eligible for any gratuity
From India, Mumbai
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From India, Mumbai
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The employee has completed 4 years and 7 months of service. If the employee has not taken leaves without pay for more than 20 days, then he will be eligible for Gratuity. As per HC decisions, an employee completing 4 years and 6 months is eligible. The last six months are considered as 1 year.
From India, Mumbai
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From India, Mumbai
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Gratuity Eligibility.pdf
Gratuity eligibility for less than 5 yrs. (4yrs.240days). docx