Dear, Good Morning,
I would like to know that what will be the gratuity if a person completed 5 years in one company, or if he/she completed 3 years or 4 years in one company without break... is it 21 days payment x 5 years....... Please provide me HR regulation too…..
Regards,
Quamar
From India, Mumbai
2I would like to know that what will be the gratuity if a person completed 5 years in one company, or if he/she completed 3 years or 4 years in one company without break... is it 21 days payment x 5 years....... Please provide me HR regulation too…..
Regards,
Quamar
From India, Mumbai
Gratuity is calculated at the rate of 15 days wages (Basic +DA) of the employee at the time of his leaving the service after completing at least 5 years and the amount will be equal to 15 days pay for every completed year of service. A fraction of a year of more than 6 months will be taken as one year and as such an employee who is leaving after working for 7 years, 6 months and 1 day will get gratuity for 8 years. The average daily rate of salary is calculated by dividing monthly salary (Basic +DA only) by 26. In order to be eligible for gratuity the employee should have worked continuously (without break) and a period of one year is considered to be continuous if he has worked at least for 240 days in that year.
An employee who has not worked for 5 years cannot get gratuity. Though lots of discussions are going on about the eligibility of employee who has put in 4 years and 240 days in the fifth year based on courts judgement, the Payment of Gratuity Act remains unamended.
The maximum gratuity amount admissible as per the Act is Rs 10 lakhs.
In the case of death of employee without completing five years, the dependents are eligible to get gratuity even though the deceased did not complete five years.
Regards,
Madhu.T.K
From India, Kannur
An employee who has not worked for 5 years cannot get gratuity. Though lots of discussions are going on about the eligibility of employee who has put in 4 years and 240 days in the fifth year based on courts judgement, the Payment of Gratuity Act remains unamended.
The maximum gratuity amount admissible as per the Act is Rs 10 lakhs.
In the case of death of employee without completing five years, the dependents are eligible to get gratuity even though the deceased did not complete five years.
Regards,
Madhu.T.K
From India, Kannur
Dear Friends ,
Calculation of Gratuity : 15/26x(last drawn Basic +DA)xyear of service
Any body can claim gratuity after completion of 5 year of service in the organisation .
Maximum limit of gratuity : upto 10 lac. as per act.
Regards,
Swarnali Banerjee.
From India, Madras
Calculation of Gratuity : 15/26x(last drawn Basic +DA)xyear of service
Any body can claim gratuity after completion of 5 year of service in the organisation .
Maximum limit of gratuity : upto 10 lac. as per act.
Regards,
Swarnali Banerjee.
From India, Madras
Hi, I have a query, can employee claim GRATUITY if he is still in organisation after completing 5years. Bhanu Prakash
From India, Mumbai
From India, Mumbai
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Gratuity calculation.doc
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