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.
From India, Hyderabad
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)
Mr. "Y" Gratuity amount is Rs. 36057.69
Y.Gowree Parameswara Rao
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.
From India, Ahmadabad
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.
From India, New Delhi
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....
From India, Ludhiana
From India, Bangalore