Dear Sankar,
With due respect to your information it is no where written as 'four years & six months service' in the Judgement announced by the Hon'ble Madras High Court.
With Regards,

From India, Delhi
Dear Mohana Pathma Priya

your Gratuity Calculator.XLS is interesting. Good attempt.

However, there is some mistake in calculations.

As per the Payment of Gratuity Act, 1972, the payment of gratuity is calculated on full year and not partial year i.e. pro rata monthly basis.

It means, if you have completed 5 years of continuous service you are eligible for Gratuity. But if your service is 5 years and 1 month (i.e. up to 6 months) it is considered as only 5 years & not for 5.1 years.

Same way, if it is 5 years & 7 months (i.e. more than 6 months), it is to be paid for 6 years and not 5years & 7 months on pro rata.

You may correct your calculator accordingly for the benefit of other junior HR fraternity.

with kindest regards

J N Pathak


Mohana Pathma Priya

Re: Clarifications on Payment of Gratuity Act,1972

Dear Mr.Murthy,

Please find attached for your information.

If you need more information

Thks & Regds,


Attached Files<image no longer exists> GRATUITY.ppt (101.0 KB, 13 views)<image no longer exists> gratuity Calculator.xls (18.5

From India, Ahmadabad
Dear All For the calcualtion of gratuity Basic salary +DA /26*15*number of year complited . regards santosh
From India, Mumbai
Hi R.N.Khola,
Can U help me regarding Gratuity?
I am working in ISO standard BPO from 2005-till date.
And i will resign on 31 March 2011.
On first year ie from Oct 2005 to Oct 2006 , i m not directly payroll of my company (probation Period) and on Oct 2006 to till date I am on payroll of company.
I have completed total 5 1/2 yrs. so my question is shall i able for Gratuity or not?
I have asked my company they told me that u r not applicable as on period of oct 2005 to oct 2006 as i am not on payroll of company.
Please help me regarding this topic ASAP.
Sangeeta W.

From India, Mumbai
Dear Sangeeta W,

You have written that you were not on direct payroll of the establishment & at the same time you are telling us that you were on probation from Oct. 2005 to Oct. 2006. With whom you were on probation? If you are not on payroll of the establishment for this period i.e. from Oct. 2005 to Sept. 2006 then you are not eligible for receiving gratuity from the employer.

From India, Delhi
hi sir, may i kw about section 7a PGA 1972 and actual calculation of payment of gratiuity. waitinf for ur prompt answer..... Rgds. Gaurav Oberoi
From India, Bangalore
Dear Gaurav,
We do not find sec. 7a in PG Act, 1972. There happen to be section 7(1) & 7A under this Act. Sec.7(1) may be read as under while section 7A relates to appointment of inspectors.
7. Determination of the amount of gratuity.—
(1) A person who is eligible for payment of gratuity under this Act or any person authorised, in writing to act on his behalf shall send a written application to the employer, within such time and in such form, as may be prescribed, for payment of such gratuity.
Calculation of gratuity is to be done as per sec. 4 of this Act & the same has already been provided by the members.

(Labour Law Consultants)

From India, Delhi
One of an employee is terminated by the company.........My questions is whether he is eligible for gratuity or not?He is not completed 5 Years of service.His Deatail are given below.......
Date Of Joining-01/01/2007
Date Of Termination-08/09/2011

From India, Vadodara
Dear all,
According to the Gratuity, 1972 this Act applies to every factory & organisation. For avail the gratuity minimum employment period is 05 Years. if any employees completed 04 years and 07 months in any organisation. Is he consider for gratuity, if consider than why ?
Anyone please tell us.
With best regards
Ram Mohan Prajapati
Human Resource Deptt.
M - 9868612124

From India, Delhi
Dear Ram Mohan, He is not to be considered for payment of gratuity. R.N.KHOLA I I LL & IR I (Labour Law Consultants) (M)
From India, Delhi

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