Though the eligibility factor has been disputed over a few court verdicts which allowed gratuity for those who have not completed five years of service but have completed four years and 240 days in the fifth year, none of these verdicts has said that it is based on joining prior to a particular year. Hence it is t be understood that gratuity is to be calculated based on the date of joining of the employee.
10th September 2012 From India, Kannur
Any person who has completed five years of service in the same organization thats 4 years + 240 days will be eligible for gratuity as per the Payments of Gratuity Act, 1972.
- Gratuity is applicable: Every Factory, Oil field Plantation, Port, Mine, Railways, Shops and Establishments etc, which employees 10 or more employees.
- As per Section. 2 (S) 15 days wages for every completed year as if the month comprises of 26 days at the last drawn wages. Therefor the calculation that you have provided is correct.
- Calculation of price-rated employee (Section 4) - 15 days wages for every completed year on an average of 3 months wages.
As per your 2nd query, as Mr. Madhu T.K. answered it should be calculated based on the joining of the employee.
11th September 2012 From India, Visakhapatnam
In your formula, please make it no. of years of service instead of no. of years of experience. Though it is a common fact that with each year in service makes a man experienced in service, the Act uses the term 'service' and not experience. Thanks & regards,
11th September 2012 From India, Pune
last drawn Basic+DA divided by 26, multiplied by 15, again multiplied by no of completed yrs of continous service subject to maximum of Rs ten lakhs.Years of service to be reckoned back from date of relieving to date of joining.
Varghese Mathew BIL,PGDPM.
11th September 2012 From India, Thiruvananthapuram
I resigned after completion of 4 years and 243 working days (exclding Weekly Off & Leave) [4 Year 10 Month & 3 Days with all leave & Weekly Off]. In My Full & Final Company denied to pay gratuity.
How to proceed now and approach now through legal route. Whom to contact & how.?
13th May 2014 From India, Vadodara