Greetings!!!
Hi, my total work experience is 4 years and 11 months. I will be completing my 5 years on January 26th, 2015. I have put in my resignation on December 8th, and I am currently in the notice period. January 29, 2015, is my last working day. Will I be eligible for the gratuity amount? I joined this organization on February 26th, 2010. Awaiting your reply... please suggest me.
Thanks & Regards,
Thalir
From India, Bangalore
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Hi, my total work experience is 4 years and 11 months. I will be completing my 5 years on January 26th, 2015. I have put in my resignation on December 8th, and I am currently in the notice period. January 29, 2015, is my last working day. Will I be eligible for the gratuity amount? I joined this organization on February 26th, 2010. Awaiting your reply... please suggest me.
Thanks & Regards,
Thalir
From India, Bangalore
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Yes, Gratuity Act entitles for gratuity Amount after Completing 4 Years and 6 Months (Please Refer Gratuity Act)
From India
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9From India
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Thank you so much, Deepak. Need one more help. Do you have any idea how to calculate the gratuity amount? Right now, when I saw my appraisal paper, they have written 700 per month for my gratuity. Can you tell me what is the exact calculation of the gratuity amount after completing 5 years? How will HR calculate the gratuity amount? Awaiting your reply, Deepak.
Thanks & Regards,
Thalir
From India, Bangalore
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Thanks & Regards,
Thalir
From India, Bangalore
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The effective date of resignation tendered by you in the notice of resignation cannot be preponed or postponed by the employer. Thus, you will be completing a clear 5 years...
{(Basic+DA)/26*15*No. of years in service}
Here Basic+DA is as per the last drawn wages...
The employer can provide superior benefits, and the Act allows it...
IT IS WRONG THAT AN EMPLOYEE WHO HAS SERVED FOR 4.6 YEARS IS ELIGIBLE...
From India, Chandigarh
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{(Basic+DA)/26*15*No. of years in service}
Here Basic+DA is as per the last drawn wages...
The employer can provide superior benefits, and the Act allows it...
IT IS WRONG THAT AN EMPLOYEE WHO HAS SERVED FOR 4.6 YEARS IS ELIGIBLE...
From India, Chandigarh
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Dear Mr. Ddoaba,
I have nothing to add worthwhile in this discussion but want to correct you regarding your counter against Mr. Deepak. This is a place where many greenhorns surf for better learning and understanding. If an employee serves a company for more than 4.5 years, they will be clearly entitled to Gratuity. Please be firm and ensure correctness before writing anything (Please refer to the Gratuity Act).
From India, Delhi
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I have nothing to add worthwhile in this discussion but want to correct you regarding your counter against Mr. Deepak. This is a place where many greenhorns surf for better learning and understanding. If an employee serves a company for more than 4.5 years, they will be clearly entitled to Gratuity. Please be firm and ensure correctness before writing anything (Please refer to the Gratuity Act).
From India, Delhi
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Please note, The Payment of Gratuity Act has not been amended to change the eligibility criteria for any employee completing 4 years and 240 days of continuous service. The 240 days are to be considered as one full year for gratuity payments starting from the sixth year onwards.
It is up to the individual company or organization to consider this as a special case or as part of their own company policy to provide gratuity to employees who complete 4 years and 240 days of continuous service.
Regards,
B. Sundararaman
sgsventures@hotmail.com
HR, IR Consultant
PS: It's important to note that the old Madras High Court judgment is applicable only to that specific company and does not constitute a Supreme Court judgment to be considered as an amendment in the Payment of Gratuity Act.
From India, Madras
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It is up to the individual company or organization to consider this as a special case or as part of their own company policy to provide gratuity to employees who complete 4 years and 240 days of continuous service.
Regards,
B. Sundararaman
sgsventures@hotmail.com
HR, IR Consultant
PS: It's important to note that the old Madras High Court judgment is applicable only to that specific company and does not constitute a Supreme Court judgment to be considered as an amendment in the Payment of Gratuity Act.
From India, Madras
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One very good explanation which I found from other post from this Cite HR Forum. thanks to ... please. Regards, bsr*
From India, Madras
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From India, Madras
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@Arunoday,
It is confirmed that any employee who serves in employment for more than 4.5 years shall not be eligible... as per PGA.
The condition of 6 months 1 day and above being counted as 1 year is in case the employee has served for more than 5 years...
From India, Chandigarh
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It is confirmed that any employee who serves in employment for more than 4.5 years shall not be eligible... as per PGA.
The condition of 6 months 1 day and above being counted as 1 year is in case the employee has served for more than 5 years...
From India, Chandigarh
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Hello,
"During this period of a minimum of 5 years of service, if in any calendar year of 12 months an employee, for reasons given, has not completed 365 days of work but has completed 240 days (or as applicable), then it will be considered that the employee has completed continuous service for that year. Therefore, if an employee joins on 01/01/2000, he completes 5 years on 31/12/2004. However, if the employee resigned on 31/08/2004, even though he would have worked more than 240 days in 2004, it will not be considered as a full year, and thus, not completing 5 years. Consequently, he would not be eligible for gratuity."
As per the Madras High Court order, in order to be eligible for gratuity, an employee should have at least 4.8 years of continuous service with the employer.
An employee is considered in service in a calendar year provided he has worked for:
- 190 days in case the employee is employed below the ground (4.6 years) - For mining staff {working below the ground}
- 240 days in any other case (above the ground - 4.8 years) - For office/field staff
Thank you.
From India, Mumbai
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"During this period of a minimum of 5 years of service, if in any calendar year of 12 months an employee, for reasons given, has not completed 365 days of work but has completed 240 days (or as applicable), then it will be considered that the employee has completed continuous service for that year. Therefore, if an employee joins on 01/01/2000, he completes 5 years on 31/12/2004. However, if the employee resigned on 31/08/2004, even though he would have worked more than 240 days in 2004, it will not be considered as a full year, and thus, not completing 5 years. Consequently, he would not be eligible for gratuity."
As per the Madras High Court order, in order to be eligible for gratuity, an employee should have at least 4.8 years of continuous service with the employer.
An employee is considered in service in a calendar year provided he has worked for:
- 190 days in case the employee is employed below the ground (4.6 years) - For mining staff {working below the ground}
- 240 days in any other case (above the ground - 4.8 years) - For office/field staff
Thank you.
From India, Mumbai
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Hello All,
I am working in a private company and have been working since February 2010. I have resigned on January 19. I have completed 4.11 years in this company, and now I am in the notice period. I will complete 5 years on the 14th of February. Am I eligible for gratuity, as the company management is saying the notice period will not be counted for 5 years? Please guide.
Neha More
From India, Pune
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I am working in a private company and have been working since February 2010. I have resigned on January 19. I have completed 4.11 years in this company, and now I am in the notice period. I will complete 5 years on the 14th of February. Am I eligible for gratuity, as the company management is saying the notice period will not be counted for 5 years? Please guide.
Neha More
From India, Pune
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Circular No_04_2016 Payment of Gratuity to the No Work No Pay System workers under Payment of Gr.pdf
WORK PLACE STANDARDS - Blank.doc