Dear All, Any one can help me for gratuity... when gratuity is applicable to me ??? Thank You
From India, Mumbai
Acknowledge(0)
Amend(0)
3From India, Mumbai
Acknowledge(0)Amend(0)
Just after completion five years of your continuous service with one employer.
From India, undefined
Acknowledge(0)Amend(0)
From India, undefined
Acknowledge(0)Amend(0)
Dear Vikas,
First, the Payment of Gratuity Act, 1972 should be applicable to your establishment.
Second, there should be termination of your employment after your rendering a continuous service of not less than 5 years in the same establishment on account of your resignation or retirement or retrenchment or dismissal of your service by your employer. The minimum service is not required in cases of death. In case of dismissal on account of certain misconducts, your employer is empowered to forfeit your gratuity either fully or partially after issuing a notice.
Third, the amount of Gratuity has to be calculated on the basis of the sum total of basic pay and dearness allowance of the last drawn wages only or the entire sum if the wages are consolidated.
Fourth, the maximum amount of Gratuity is Rs. 20 lakh and it is not taxable.
Fifth, you are entitled to gratuity only for those years in which you have completed 240 days of continuous service during the entire service.
From India, Salem
Acknowledge(0)Amend(0)
First, the Payment of Gratuity Act, 1972 should be applicable to your establishment.
Second, there should be termination of your employment after your rendering a continuous service of not less than 5 years in the same establishment on account of your resignation or retirement or retrenchment or dismissal of your service by your employer. The minimum service is not required in cases of death. In case of dismissal on account of certain misconducts, your employer is empowered to forfeit your gratuity either fully or partially after issuing a notice.
Third, the amount of Gratuity has to be calculated on the basis of the sum total of basic pay and dearness allowance of the last drawn wages only or the entire sum if the wages are consolidated.
Fourth, the maximum amount of Gratuity is Rs. 20 lakh and it is not taxable.
Fifth, you are entitled to gratuity only for those years in which you have completed 240 days of continuous service during the entire service.
From India, Salem
Acknowledge(0)Amend(0)
Thank you, Rakesh and Umakanthan.
Can you explain gratuity to me with an example? As per my understanding, gratuity is applicable after continuous service of 4 years and 240 days with one employer. Please share your knowledge on the same.
Thank you,
Vikas Senghani
From India, Mumbai
Acknowledge(0)Amend(0)
Can you explain gratuity to me with an example? As per my understanding, gratuity is applicable after continuous service of 4 years and 240 days with one employer. Please share your knowledge on the same.
Thank you,
Vikas Senghani
From India, Mumbai
Acknowledge(0)Amend(0)
Mr. Vikas, a high court verdict has made it clear that if the employee has completed 4 years and 240 days in an organization, he is eligible to get gratuity benefit. Even the ID Act also considers 240 days' presence in a year for getting benefits under any provision.
Mr. Umakanthan. M's explanation provides a more detailed insight into the subject matter. However, you can refer to the act handbook for a broader understanding.
Gratuity calculation:
(Basic + DA) x Service Year x 15/26
From India, undefined
Acknowledge(0)Amend(0)
Mr. Umakanthan. M's explanation provides a more detailed insight into the subject matter. However, you can refer to the act handbook for a broader understanding.
Gratuity calculation:
(Basic + DA) x Service Year x 15/26
From India, undefined
Acknowledge(0)Amend(0)Looking for something specific? - Join & Be Part Of Our Community and get connected with the right people who can help. Our AI-powered platform provides real-time fact-checking, peer-reviewed insights, and a vast historical knowledge base to support your search.