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My wife has worked for a pvt ltd company for 4 yrs & 8 months after which she has been on medical leave (actually maternity, first trimester due to some complications) if she resigns now, will she be eligible for gratuity payment & how much will she receive..considering she finishes 5 yrs on 1st jan 2010.
24th November 2009 From India, Delhi
Your wife being completed 4 years and 8 months, is eligible for gratuity payments. If she is availing the maternity leave of 6 weeks as per law that leave is also a part of her service.
If she resigns after 5 years as you said, the gratuity will be :
1. last drawn Basic Plus D.A / 26 days = 1 day wage / salary
2. per year gratuity = 15 days X 1 day wage / salary
3. Total service i.e. in your case 5 Years X per year gratuity.
For Ex: Basic + DA = 100
per day wage = 100 / 26 days = 3.85 per day wage
Gratuity per year = 15 days X 3.85 = 57.75
Gratuity for 5 years = 5 X 57.75 =288.75
Mohan Rao
Manager HR
24th November 2009 From India, Visakhapatnam
thankyou for your reply.
does the maternity leave also apply in the first trimester of pregnancy,or is it only applicable for 3weeks before & after this case can she avail medical & maternity leave both for a period of 4 months & are these leaves paid?!!
The gratuity will be paid automatically in her f&f settlement or she will have to ask for it?!
she has recvd salary so far for 2 months & has been on leave w/out pay since.
Thanks - Sandeep
25th November 2009 From India, Delhi
Maternity leave is applicable only 6 weeks before and 6 weeks after delivery of child
For benefit of gratuity she got to apply in a separate form prescribed to the employer after resignation and having 5 years of continues services with the said employer. Or having 4 years and 240 days of service.
If is she is miscarried , fall ill after delivery than another 1 month of leave is a paid leave and there after any leave is leave with out pay.
Mohan Rao
Manager HR
25th November 2009 From India, Visakhapatnam
Dear Mr. Mohan Rao,
In our company, maternity leave is applicable 12 weeks. will it change from company to company?
Can you please tell me about Gratuity, to whom it is applicable, is it applicable in each and every company. ..... when an employee falls under this.....
Awaiting your quick reply....
25th November 2009 From India, Eluru
Hi Annukalpana
There was a typical error in figures is. 6 months before and 6 weeks after delivery, now corrected, This leave applies to all the organisations and establishments.
Gratuity is applicable to all the employees of any organisation / establishments when a employee covers a services of 5 years and more. Gratuity is paid @ 15 days salary / wage per year of service. To arrive at 15 days wage or Salary , the last paid Basic + DA is to be divided by 26 days for arriving at 1 (one ) day wage / salary and then it has to be multiplied by 15 days to arrive at per year of Gratuity amount. Hope you are clear.
Mohan Rao
Manager HR
25th November 2009 From India, Visakhapatnam
Dear Mr.Malhotra,
Gratuity Payable=15\26*last drawn wages*no.of yrs of service
last drawn wages=basic+DA
no. of yrs of service=5 or more yrs
For example your Basic+DA=5000(at the time you resign),and you hav 7 yrs of continuous service,then the gratuity payable to you will be:
Maximum Ceiling For Gratuity is 350000
i hope you got the calculations
Warm regards,
26th November 2009 From India, Ahmadabad
My company does not have D.A. instead they are paying Spl. allowance. Can any body suggest me is Spl. allowance included while calcuating gratuity. I will be pleased if some notification or PF commissioner's or court verdict may be attached as support.
26th November 2009 From India, Mumbai
Thanks Mr Rao,
also if u could the one month period of notice considered as part of service( to calculate 5 yrs) or should notice of 1 month be served after giving the resignation papers.
Just to reinstate maternity is applicabe 6 months before & 6 weeks after delivery?!
26th November 2009 From India, Delhi
Mr. Sandesingh
1. One month notice period is also calculated in total service
2. 1 month notice period the employee had to work for taking into consideration in total
3. 1 month notice to be submitted along with the resignation.
4. The maternity leave with wages as per MB Act is 6 weeks before and 6 weeks after
5. If there is any miscarriage or illness then 1 month of leave with wages can be availed
with the support of the doctor's certificate.
Hope you are clear.
Mohan Rao
Manager HR
27th November 2009 From India, Visakhapatnam
Dear MR.Krm rao, can a person having 4 yrs and 9 mths service claim gratuity???is it according to the law??? Warm Regards, Divya
27th November 2009 From India, Ahmadabad
Hi Divia
As per the Madras High Court Judgement if an employee put up a service of 4 years and 240 days of service in a single organisation he is eligible for gratuity benefit. In your case the employee had put up a service of 4 years and approx. 270 days, hence he is eligible to get the benefit of gratuity.
Mohan Rao
Manager HR
27th November 2009 From India, Visakhapatnam
Hi Sir,
Is this law applicable only in Tamil Nadu??Also i want to know if the gratuity calculation the same in case of a deceased employee????i read this info in another thread,
Gratuity for any death case would be calculated based on below formula(as per Gratuity act):
Gratuity amount= (No. of year service in company + No. of service years left till his age of 58 ) * (15/26*Last drawn basic)
Is this true???
27th November 2009 From India, Ahmadabad
Hi Divia
Payment of Gratuity Act applicable and same through out India.
For deceased employee the calculation is the same, but the total 5 years of services is not necessary, for example a deceased worked for say 1 year, even then the gratuity has to be paid.
For gratuity payment to a deceased only no of years he served is taken in to account for payment of gratuity not the left out years upto an of 58.
Mohan Rao
Manager HR
27th November 2009 From India, Visakhapatnam

As per the Payment of Gratuity Act 1972,

(1) Gratuity shall be payable to an employee on the termination of his employment after he has rendered continuous service for not less than five years, -

(a) on his superannuation, or

(b) on his retirement or resignation, or

(c) on his death or disablement due to accident or disease:

Provided that the completion of continuous service of five years shall not be necessary where the termination of the employment of any employee is due to death or disablement:

Provided further that in the case of death of the employee, gratuity payable to him shall be paid to his nominee or, if no nomination has been made, to his heirs, and where any such nominees or heirs is a minor, the share of such minor, shall be deposited with the controlling authority who shall invest the same for the benefit of such minor in such bank or other financial institution, as may be prescribed, until such minor attains majority.]

Explanation. : For the purposes of this section, disablement means such disablement as incapacitates an employee for the work which he, was capable of performing before the accident or disease resulting in such disablement.

(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 concerned:

Provided that in the case of a piece-rated employee, daily wages shall be computed on the average of the total wages received by him for a period of three months immediately preceding the termination of his employment, and, for this purpose, the wages paid for any overtime work shall not be taken into account.:

Provided further that in the case of [an employee who is employed in a seasonal establishment and who is riot so employed throughout the year], the employer shall pay the gratuity at the rate of seven days wages for each season.

Explanation: In the case of a monthly rated employee, the fifteen days wages shall be calculated by dividing the monthly rate of wages last drawn by him by twenty-six and multiplying the quotient by fifteen.

(3) The amount of gratuity payable to an employee shall not exceed three lakhs and fifty thousand] rupees.

(4) For the purpose of computing the gratuity payable to an employee who is employed, after his disablement, on reduced wages, his wages for the period preceding his disablement shall be taken to be the wages received by him during that period, and his wages for the period subsequent to his disablement shall be taken to be the wages as so reduced.

(5) Nothing in this section shall affect the right of an employee to receive better terms of gratuity under any award or agreement or contract with the employer.

(6) Notwithstanding anything contained in sub-section (1), -

(a) the gratuity of an employee, whose services have been terminated for any act, wilful omission or negligence causing any damage or loss to, or destruction of, property belonging to the employer, shall be forfeited to the extent of the damage or loss so caused.

(b) the gratuity payable to an employee may be wholly or partially forfeited] -

(i) if the services of such employee have been terminated for his riotous or disorderly conduct or any other act of violence on his part, or

(ii) if the services of such employee have been terminated for any act which constitutes an offence involving moral turpitude, provided that such offence is committed by him in the course of his employment.
30th November 2009 From India, Delhi
Gratuity Casestudy :
Hi all,pls help me with this gratuity of a deceased employee.Rajiv,a 42 yr old works in XYZ Ltd from 17/09/1999.He expires on 31/12/2007.He was drawing a salary (basic+D.A) of Rs.8800.What is the amount of gratuity his nominee would get????
2nd December 2009 From India, Ahmadabad
Hi Divya
The Expired employee had put in service of 8 Years 3 months and 14 days. Hence he would get gratuity benefit for 8 Years only.
The workout would be: Last drawn Basic + DA = 8800 / 26 = 338.46 per day wage X 15 days =5076.90 Per Year Gratuity benefit, for 8 years = 8 X 5076.90 = 40615.20. Total Gratuity.
Hence his nominee would get a total gratuity of Rs.40615.00
Mohan Rao
Manager HR
3rd December 2009 From India, Visakhapatnam
Hi Mr.Krm roa,
Thank you so much.I am really confused about the calculation of gratuity incase of deceased employee.there are so many differents posts on this,and i m confused as to what to believe.In one post i read that if the employer is contributing towards EDLI,then the NO.of Yrs of service remaining till 58 will be taken for gratuity computations in case of deceased,is it true????
3rd December 2009 From India, Ahmadabad
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