Saswatabanerjee
Partner - Risk Management
Ravi5554
Asst.manager -hr
Sn_singh2006
Service At Top Level Management
Ashutosh Thakre
Hr Professional
+1 Other

Thread Started by #madeshwaran123

Sir,
I have worked in a big concern as office manager for 18 years. ( 100+ staff)
After 18 years, they have asked me to leave the service since my salary is high!!
What is my gratuity Eligibility ? ( in this case of termination!)
a) 18 X 15 days / 26 days salary ( basic + da)
b) 18 X 30 days / 26 days salary ( basic + da + special allowance etc…)
c) 15* X 30 days / 26 days salary ( basic + da + special allowance etc…)
Kindly confirm.
My friend told I will be eligible for full salary (30 days / year ) since I have worked 10+ years & employer is terminating!
My basic 20,000 + DA 0 + Other allowances 30,000 = 50,000.
They put only basic & other allowance. ( they don't put da, hra breakup only to avoid calculations!!)
Kindly guide me.
- See more at: Gratuity Payable only if employee put in 5 years of service – HC
23rd July 2014 From India, Coimbatore
Hi, If you are completed 18 years else 6 years gratuity formula is same for both scenario 1. (last drawn Basic+DA)*15/26*no of years of service
23rd July 2014 From India, Mumbai
I have gone through the link in the post.
I do not see any relevance of the case with your present problem. Your problem is whether you should get 15 days or 30 days per year worked and whether you should get 18 years or 15 years credit (I do not know why its 15 years). The case you have stated is only concerned with whether concerned person was or was not employed with the company.
So what is the problem actually ?
And where did you get the idea that you can get gratuity of 30 days per year worked.

5th August 2014 From India, Mumbai
You will be entitled for gratuity salary/26 x 15 x 18 (years): Salary means basis and DA
5th August 2014 From India, Hyderabad
I have gone through your case and found that there is no any dispute per se as far as Gratuity under Payment of Gratuity Act, 1972 is concerned.
Here in the instant case, you have completed 18 years of service. Keeping in mind the provisions of the Act, you are eleigible for Gratuity for 18 years of service based on the following formule:
Salaryx15 daysx 18 years of completed year of service/26
Salary= Basic Salary plus D.A.
Since you have been terminated, you are aligible for notice salary as per terms of service. If nothing is mentioned in the appointment letter, you are eligible for 1 month salary for notice period.
Regards,
19th August 2014 From India, Erode
Dear Madeshwaran,
The Gratuity eligibility is (Basic+DA)*15/26 * no of years of completed service, subject to a maximum limit of Rs. 10,00,000/- or actual which ever is lower.
The only thing that may differ is the no of years. If you have completed 18 Years and 6 months than it would be calculated as 19 years otherwise 18 years.
Rest inclusion of special allowance in the gratuity is not allowed, any other calculation formula is not applicable.
Therefore based on your input the gratuity calculated will be:-
20,000*(15/26)*18 = 2,07,962/- Rs.
Regards,
Ashutosh Thakre
19th August 2014 From India, Mumbai
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