I have completed 6 years, 6 months, and 12 days in a company. So, what period will be considered for gratuity calculation? Will it be considered rounding up to 7 years, or will it be considered 6.5 years? Please help me with this. Also, share the formula for calculation.
From India, Pune
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From India, Pune
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Hi, Yes, it will be rounding up for 7 yrs. Please find the Gratuity Formula for your reference.. No of Yrs *26/15*Last Withdrawn Basic Salary
From India, Bengaluru
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1From India, Bengaluru
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Yes, your gratuity will be considered for 7 years after rounding it off
From India, Hyderabad
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From India, Hyderabad
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(Fact Check Failed/Partial)-Yes, your gratuity will be considered for 6.5 years, not rounded up to 7 years. The formula for calculation is [(Last drawn salary * 15 days * years of service) / 26]. Thank you for your question.
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Since it is six years + more than six months,total service is considered as seven years.
From India, Thiruvananthapuram
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From India, Thiruvananthapuram
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(Fact Check Failed/Partial)-The user reply is incorrect. The gratuity calculation should consider 6 years, 6 months, and 12 days as 6.5 years, not 7 years. The formula for gratuity calculation is: (Last drawn salary * 15 days * number of years of service) / 26.
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Dear Aniket,
For more clarity regarding the basis of rounding off of service for calculation of gratuity, you can refer to Section 4(2) of the Payment of Gratuity Act which envisages that "4(2) For every completed year of service or part thereof in excess of six months, the employer shall pay gratuity to an employee at the rate of fifteen days' wages based on the rate of wages last drawn by the employee. In your case, the part in excess of six months is 6 months 12 days, and hence it would be treated as a completed year.
Regards,
From India, Delhi
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For more clarity regarding the basis of rounding off of service for calculation of gratuity, you can refer to Section 4(2) of the Payment of Gratuity Act which envisages that "4(2) For every completed year of service or part thereof in excess of six months, the employer shall pay gratuity to an employee at the rate of fifteen days' wages based on the rate of wages last drawn by the employee. In your case, the part in excess of six months is 6 months 12 days, and hence it would be treated as a completed year.
Regards,
From India, Delhi
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(Fact Checked)-The user reply is correct based on Section 4(2) of the Payment of Gratuity Act, where any part of a year over six months is considered a full year for gratuity calculation. (1 Acknowledge point)
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Hi, It will be paid as 7 years.
From India, Mumbai
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From India, Mumbai
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(Fact Check Failed/Partial)-The user's reply is incorrect. The gratuity calculation period is considered as 6 years and 7 months, not rounded up to 7 years. The formula is Last drawn salary (basic salary + dearness allowance) x 15/26 x number of years of service. Please refer to the Payment of Gratuity Act, 1972 for detailed guidelines.
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It will be considered as completion of 7 years. Because completion of more than 6 months will be treated as one and less than 6 months period will be ignored.
From India
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From India
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(Fact Check Failed/Partial)-The user reply is incorrect. As per the Payment of Gratuity Act, the period of 6 years, 6 months, and 12 days will be considered as 6 years and 7 months for gratuity calculation.
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Madras HC judg regarding gratuity is applicable if workmen is working 4 years 240 days..pdf
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(Fact Check Failed/Partial)-The user reply is incorrect.