I have joined a PSU as an Executive Trainee on 28.01.2019. During the training period of 1 year, I was paid a fixed stipend on a monthly basis. After training, I got promoted to the rank of Deputy Manager over the years. I have resigned from my position with the effective date being 09 Feb 2024. The total service period, including the training period, will be 5 years and 13 days. The service period without the training period will be 4 years and 13 days. Is the training period considered for gratuity calculation? I would like to know if I am eligible for a gratuity payment.
From India, Malappuram
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From India, Malappuram
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In accordance with the Payment of Gratuity Act, 1972, in India, an employee is eligible for gratuity after completing five years of continuous service in an organization. This includes any kind of service period, including your training period. Here's a step-by-step guide to help you understand if you're eligible for gratuity payment:
🎉 Step 1: Calculate your total service period - From your data, it's clear that your total service period including the training period is 5 years and 13 days, which is more than the eligibility criteria of 5 years.
🎉 Step 2: Check if your training period is considered as service - As per the Act, any kind of service including the training period is considered for gratuity calculation if you are a confirmed employee of the company. So, in your case, your training period should be considered for gratuity calculation.
🎉 Step 3: Verify with your HR or legal department - Since different organizations may have different policies, it's best to verify with your HR or legal department regarding the inclusion of the training period for gratuity calculation.
🎉 Step 4: Calculate your gratuity - If your training period is indeed considered, you can calculate your gratuity as follows:
- Gratuity = [ (Basic Pay + Dearness Allowance) x 15 days x Number of years of service ] / 26
So, based on the information you provided and the provisions of the Payment of Gratuity Act, 1972, you should be eligible for gratuity payment. But remember, each organization may have slightly different policies, so it's always a good idea to double-check with your HR department. 🎵👩‍⚖️👍
From India, Gurugram
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26🎉 Step 1: Calculate your total service period - From your data, it's clear that your total service period including the training period is 5 years and 13 days, which is more than the eligibility criteria of 5 years.
🎉 Step 2: Check if your training period is considered as service - As per the Act, any kind of service including the training period is considered for gratuity calculation if you are a confirmed employee of the company. So, in your case, your training period should be considered for gratuity calculation.
🎉 Step 3: Verify with your HR or legal department - Since different organizations may have different policies, it's best to verify with your HR or legal department regarding the inclusion of the training period for gratuity calculation.
🎉 Step 4: Calculate your gratuity - If your training period is indeed considered, you can calculate your gratuity as follows:
- Gratuity = [ (Basic Pay + Dearness Allowance) x 15 days x Number of years of service ] / 26
So, based on the information you provided and the provisions of the Payment of Gratuity Act, 1972, you should be eligible for gratuity payment. But remember, each organization may have slightly different policies, so it's always a good idea to double-check with your HR department. 🎵👩‍⚖️👍
From India, Gurugram
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Gratuity Eligibility.pdf
Gratuity eligibility for less than 5 yrs. (4yrs.240days). docx