Can anyone help me in knowing if i am eligible for gratuity. I joined in a company in sep 2008 and started my maternity leave from may 2013 to jan 2014. I wad on esi leave. Am i eligible for gratuity.
From India, Chennai
From India, Chennai
To calculate number of years employment, employee’s date of joining and date of leaving is considered and it has nothing to do with leaves availed. In above case, employee will be eligible for gratuity as employee will leave after completing 5 years.
By the way, are you asking the query out of curiosity or are you planning to leave after your Maternity Leave
From India, Ahmadabad
By the way, are you asking the query out of curiosity or are you planning to leave after your Maternity Leave
From India, Ahmadabad
In case of calculating gratuity only date of joining aswell as date of leaving consider. In case of maternity leave it wil consider in calculation of gratuity payment. Rgds
From India, Mumbai
From India, Mumbai
Eligibility
Any employee who has rendered continuous service of not less than five years will be eligible for claiming gratuity under the payment of Gratuity Act, 1972. Temporary / Trainee period will also be eligible for the purpose of Gratuity calculation provided it is continuous in nature & not covered under the Apprentices Act, 1961.
Benefits
1. The quantum of gratuity is to be computed at the rate of 15 days salary based on rate of salary last drawn by the employee concerned for every completed year of service or a part thereof exceeding 6 months.
Calculation of Gratuity
1. Gratuity = Monthly Salary x 15 days x No. of yrs. of service
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2. Max. Gratuity payable under the Act is Rs. 3,50,000/- (w.e.f. 24-9-1997)
3. Any excess payment above the ceiling of Rs. 3,50,000/- will be taxable income in the hands of the employee.
From India, Chennai
Any employee who has rendered continuous service of not less than five years will be eligible for claiming gratuity under the payment of Gratuity Act, 1972. Temporary / Trainee period will also be eligible for the purpose of Gratuity calculation provided it is continuous in nature & not covered under the Apprentices Act, 1961.
Benefits
1. The quantum of gratuity is to be computed at the rate of 15 days salary based on rate of salary last drawn by the employee concerned for every completed year of service or a part thereof exceeding 6 months.
Calculation of Gratuity
1. Gratuity = Monthly Salary x 15 days x No. of yrs. of service
26
2. Max. Gratuity payable under the Act is Rs. 3,50,000/- (w.e.f. 24-9-1997)
3. Any excess payment above the ceiling of Rs. 3,50,000/- will be taxable income in the hands of the employee.
From India, Chennai
Dear Mrs. Sandy,
Referring to the statutory provisions, an employee is eligible for gratuity if he has rendered a continiuous service of 5 years.
In your case, the period of five year seems to be completing in Sept 2013. Assuming that you have rendered uninterrupted service from Sept 2008 to May 2013, the issue relating to continuous service arises only for the fifth year i.e. Sept 2012 to Sept 2013. An employee is deemed to be in continuous service if he has worked for over 240 days in a particular year. One of the exemptions for calculation of the no of days present above, is maternity leave upto 12 weeks. Therefore, in case you have worked for 240 days minus 2 weeks(12*6 = 72 days) i.e. 168 days, in the fifth year of service you will be deemed to be in continuous service and be eligible for gratuity. If you furnish the exact dates, I will be in a better position to make calculations and determine your eligibility.
Hope that helps
From India, Pune
Referring to the statutory provisions, an employee is eligible for gratuity if he has rendered a continiuous service of 5 years.
In your case, the period of five year seems to be completing in Sept 2013. Assuming that you have rendered uninterrupted service from Sept 2008 to May 2013, the issue relating to continuous service arises only for the fifth year i.e. Sept 2012 to Sept 2013. An employee is deemed to be in continuous service if he has worked for over 240 days in a particular year. One of the exemptions for calculation of the no of days present above, is maternity leave upto 12 weeks. Therefore, in case you have worked for 240 days minus 2 weeks(12*6 = 72 days) i.e. 168 days, in the fifth year of service you will be deemed to be in continuous service and be eligible for gratuity. If you furnish the exact dates, I will be in a better position to make calculations and determine your eligibility.
Hope that helps
From India, Pune
Dear Sandy,
You have mentioned that you joined the company in September 2008 and you are intending to leave the company once your maturity leave is over.I presume that you are leaving company by the end of January.I can guess the the query has arisen in your mind as to whether the maternity period, you have availed, is qualified for calculation of 5 years.In this connection, you are requested to refer to Section 2A of the Act, which deals with the definition of 'Continuous service'. It is clearly given in the Sub-section 2(iv) that total period of maternity leave not exceeding TWELVE WEEKS shall be counted for the purpose of calculation of continuous service of 5 years for eligibility of gratuity.In your case,you are availing maternity leave from May 2013 to January 2014,the whole period of which may not be counted for the purpose of gratuity payment. Though apparently it looks that you have completed more than five years and may be because of the same reasons most of my colleagues have given a positive nod for the payment of gratuity, but I have a doubt, as yours is a marginal case.I, therefore, advise you to be cautious and work out the the whole things before putting up the papers.
BS Kalsi
Member since Aug 2011
From India, Mumbai
You have mentioned that you joined the company in September 2008 and you are intending to leave the company once your maturity leave is over.I presume that you are leaving company by the end of January.I can guess the the query has arisen in your mind as to whether the maternity period, you have availed, is qualified for calculation of 5 years.In this connection, you are requested to refer to Section 2A of the Act, which deals with the definition of 'Continuous service'. It is clearly given in the Sub-section 2(iv) that total period of maternity leave not exceeding TWELVE WEEKS shall be counted for the purpose of calculation of continuous service of 5 years for eligibility of gratuity.In your case,you are availing maternity leave from May 2013 to January 2014,the whole period of which may not be counted for the purpose of gratuity payment. Though apparently it looks that you have completed more than five years and may be because of the same reasons most of my colleagues have given a positive nod for the payment of gratuity, but I have a doubt, as yours is a marginal case.I, therefore, advise you to be cautious and work out the the whole things before putting up the papers.
BS Kalsi
Member since Aug 2011
From India, Mumbai
Dear Sandy,
If you resign at this point of time without re-joining, you will not be eligible for Gratuity, because :-
There is a provision of minimum 5 years' continuous service in the Company, which is being interrupted in your case due to your leave. You have termed it Maternity Leave, but the whole period cannot be termed as Maternity Leave as because this has been defined in the Act as 12 weeks period (6 weeks: prenatal and 6 weeks : post natal). Hence the period of Leave without pay will be deducted from the total period of service. If this period is less than 5 years within the meaning of Act, you shall not be eligible for Gratuity.
Secondly, it is most likely that you were not granted such a long leave and you are continuing on unauthorized leave. In such case you have made yourself liable for disciplinary action, not a respectable sending off. If you insist for Gratuity and other claims, and the management comes to know of your intent, they may set-up an inquiry for unauthorized absence and even terminate your services.
Hence if you want to leave, pl leave with dignity.
AK Jain
From India, Jabalpur
If you resign at this point of time without re-joining, you will not be eligible for Gratuity, because :-
There is a provision of minimum 5 years' continuous service in the Company, which is being interrupted in your case due to your leave. You have termed it Maternity Leave, but the whole period cannot be termed as Maternity Leave as because this has been defined in the Act as 12 weeks period (6 weeks: prenatal and 6 weeks : post natal). Hence the period of Leave without pay will be deducted from the total period of service. If this period is less than 5 years within the meaning of Act, you shall not be eligible for Gratuity.
Secondly, it is most likely that you were not granted such a long leave and you are continuing on unauthorized leave. In such case you have made yourself liable for disciplinary action, not a respectable sending off. If you insist for Gratuity and other claims, and the management comes to know of your intent, they may set-up an inquiry for unauthorized absence and even terminate your services.
Hence if you want to leave, pl leave with dignity.
AK Jain
From India, Jabalpur
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