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Thread Started by #Namrata786

Dear sir,
Please update whether i would be appicable for gratutiy as i started working in one organization on 01-10-2007 & resigned on 28-06-2012
this is for my personal use as i have resigned from my present job i want to know whether i would be liable for gratuty under gratuity act 1972

20th July 2012 From India, Ludhiana
Hii Narmtata.
Gratuity Period is we have minimum 5 Year.
every year minimum working days 180 days
and graduty formula is : Basic + DA (present basic) / 26 * 15 * No Of worked Years.
21st July 2012 From India, Hyderabad
dear when employee liable for gratuity? completion of 5 year service as per calender or completion of 4 years and working of 240 / 180 days is enough in 5th year.
21st July 2012 From India, Ahmadabad
guru Sir, I have read the notifications as gratutiyy can be applicable on the continous working of 4 years & 240n days without break..... Please revert//// namrata
21st July 2012 From India, Ludhiana
Hi Namrata, Please see the attached Madras High Court order for your clarification. Hence you are eligible. Regards Sunil Sharma
21st July 2012 From India, New Delhi

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File Type: pdf Madras High Court Decision on 4 yrs & 240 days .pdf (1.46 MB, 459 views)

Dear Namrata

as per the gratuity Act 1972, you should work 5 years for gratuity eligibility. here i would explain breif gratuity process.

eg. "X" employee joined in ABC company 01.01.2005 and resigned on 10.11.2009. Mr. "X" is not eligible for gratuity. because, he unable to complete his 5 years of service.

Mr. "Y" joined in PQR company on 01.01.2005 and resigned on 10.10.2010. Mr. "Y" eligible for gratuity. because he successfully completed his 5 years service. (for gratuity eligility is calender year counting )

for calculation of gratuity amount: each year 240 working days

eg: Mr. "Y" eligible for gratuity. his service 5 years 10 months. after crossing morethan 6 months, it counts as another year. so, Mr. Y total service is 6 years. but he completes 240 working days in a year only 5 years (one year he worked only 230 days. ) he lost one year as count. he is getting gratuity amount for 5 years only.

Gratuity calculation: Last Drawn Salary*No. of years of service*15/26

Mr. "Y" last drawn salary is 12500.00 (Basic + DA)

12500*5*15/26= 36057.69

Mr. "Y" Gratuity amount is Rs. 36057.69


Y.Gowree Parameswara Rao

21st July 2012 From India, Hyderabad
thank you for enhance my knowledge regarding Gratuity, sorry but there is raised one question in my mind and that is if some one work for 6 year in any one organization,in this six year in 2 years he is not compacted 180 days then he is eligible for it or not, if he is eligible then how many year will calculated for his gratuity Calculation.
please give me solution of this question.
Jatin Prajapati
21st July 2012 From India, Ahmadabad
Dear Jatin,
Ae per Gratuity Act 1972 please refer the section 2A
Continuous service Means
2A- For the purposes of this Act – (1) an employee shall be said to be in continuous service for a period if he has, for that period, been in uninterrupted
service, including service which may be interrupted on account of sickness, accident, leave, absence from duty without leave (not being absence in
respect of which an order 3*** treating the absence as break in service has been passed in accordance with the standing orders, rules or regulations
governing the employees of the establishment), lay-off, strike or a lock-out or cessation of work not due to any fault of the employee, whether such
uninterrupted or interrupted service was rendered before or after the commencement of this Act;
Hence employee will be eligible for 6 years Gratuity Benefit amount.
Sunil sharma
21st July 2012 From India, New Delhi
Dear Gowree Sir,
You have cleared that a person is eligible for gratutiy if he/she completes his/her 5 years of continous service but as per SC gratutiy can also be eligible who so ever has completed continous service of 4 years & 240 days....
Please clear in my case ... as I joined on 01-10-2007 & resigned on 28-06-2012..... whether I am eligible or not....
23rd July 2012 From India, Ludhiana
Hi Namrata, Have you seen attached above judgement of Madras High Court? Kindly see for your clarification. Regards Sunil Sharma
23rd July 2012 From India, New Delhi
pls. tell me about contract Labour regulation Act. Sunil Kumar Assistant Personnel Haridwar
23rd July 2012 From India, Dehra Dun
D.A. stands for Dearness Allowance its also the part of basic salary and its applicable for workers category only, not for staff..
26th July 2012 From India, New Delhi
But in case of fifth year only thereafter more then six months will be consider as full year. Suppose someone had completed services 5years and 7 months then it will be consider as 6years.
26th July 2012 From India, New Delhi
I joined on 31.01.2008 and going to resign on 27.09.2012, please advice me, I am eligible for gratuity under the Payment of Gratuity Act.(Continious service for 5 years)i.e, 4 Years 271 days Including sunday and approved holiday used during this period.

15th September 2012 From India, Bangalore
Hi, A per gratuity act, Gratuity rule is applicable on completion of 4 years and 240 days/4 years and 6 month of an employees
24th September 2012 From India, Delhi
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