Sir, I am willing to take retirement from the organization where I have worked for more than 5 years. Am I entitled to receive gratuity from the organization? When I joined, my age was 57, and now I am about 62 years old.
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Hi,
According to the Gratuity Act of 1972, an employee is eligible to receive a gratuity amount after completing five years of continuous service at one organization. The gratuity amount is paid to the employees once they retire, resign, or are laid off.
According to Section 4 of the Gratuity Act, in the case of termination of a job due to death or disability, the condition of five-year continuous service is not applicable. In case of the death of an employee, the gratuity amount will be paid to the nominee or the legal heir.
The Gratuity Act of 1972 applies to all organizations, including factories, mines, oil fields, plantations, ports, railways, motor transport undertakings, companies, shops, and establishments employing more than 10 workers.
According to the existing norms, the employee can apply for the gratuity amount within 30 days from when it becomes payable. An employer cannot reject an application even if it's filed after 30 days. The employer will have to specify the amount payable and the payment date within 15 days after receiving the application for the gratuity amount. The employer will have to specify the reason for rejecting an application for gratuity in case of the rejection of the application.
Gratuity Calculation:
The gratuity amount earned by an employee depends on the tenure of the service and the last drawn salary. It is calculated based on the basic salary and dearness allowance. For gratuity calculation, every month is considered 26 days for the organizations covered under the Gratuity Act of 1972. Gratuity is paid for every 15 days for each completed year of service. In the last year of employment, if an employee serves for more than six months, it will be rounded off to the next number.
Formula to calculate gratuity: Last drawn salary (basic salary plus dearness allowance) * number of completed years of service * 15/26.
From India, Madras
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1015According to the Gratuity Act of 1972, an employee is eligible to receive a gratuity amount after completing five years of continuous service at one organization. The gratuity amount is paid to the employees once they retire, resign, or are laid off.
According to Section 4 of the Gratuity Act, in the case of termination of a job due to death or disability, the condition of five-year continuous service is not applicable. In case of the death of an employee, the gratuity amount will be paid to the nominee or the legal heir.
The Gratuity Act of 1972 applies to all organizations, including factories, mines, oil fields, plantations, ports, railways, motor transport undertakings, companies, shops, and establishments employing more than 10 workers.
According to the existing norms, the employee can apply for the gratuity amount within 30 days from when it becomes payable. An employer cannot reject an application even if it's filed after 30 days. The employer will have to specify the amount payable and the payment date within 15 days after receiving the application for the gratuity amount. The employer will have to specify the reason for rejecting an application for gratuity in case of the rejection of the application.
Gratuity Calculation:
The gratuity amount earned by an employee depends on the tenure of the service and the last drawn salary. It is calculated based on the basic salary and dearness allowance. For gratuity calculation, every month is considered 26 days for the organizations covered under the Gratuity Act of 1972. Gratuity is paid for every 15 days for each completed year of service. In the last year of employment, if an employee serves for more than six months, it will be rounded off to the next number.
Formula to calculate gratuity: Last drawn salary (basic salary plus dearness allowance) * number of completed years of service * 15/26.
From India, Madras
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