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Korgaonkar K A
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I am working in private software firm since 5 years, in India.
Recently, my company owner suggested me to get separate from company.
As, I have completed 5 years in company, Whether I am eligible for gratuity criteria ?
Right now, My Company have total 10 employees including me.
If company remove some employees in future, still Company is suppose to pay my gratuity ?
How gratuity is calculated ?
(My Basic salary in 15000 but there is no DA mentioned. )

As per the Payment Gratuity Act, you are entitle to get Gratuity if you have completed 5 years of the service irrespective of the reason of leaving- resignation, death, termination, transfer to another company
Yes, as per Gratuity Act and AS 15 of ICAI, company is liable to pay Gratuity
calculation will be as follows
Last monthly basic salary/ 26 X 15 X no. of years of service completed
DA is applicable only if mentioned
In your case, it will be 15000/26 X 15 X 5
You are eligible for Gratuity amount of Rs. 43269.00

Dear Govind ji,
Thank you for your reply. Your reply is correct. But you did not mention about the applicability of POG to any establishment. No doubt, in the article it is mentioned that the Act is applicable where 10 or more persons are working.
With due respect to you I would like to have clarification from you on your following quote.
"AS 15 of ICAI" means "Accounting Standard 15 of The Institute of Chartered Accountants of India". AS 15 is pertaining to employee benefits which includes many other benefits such as Medical Care, Insurance, Profit Sharing, Leave including sabbatical leave and many more, to my knowledge.
Do you mean to say that all such benefits are mandatory since written in AS 15?

Please find following clarity
This Act is applicable to all states (except Jammu and Kashmir) and particularly to every factory,
mine, oilfield, plantation, port, Railways Company. It is also applicable to every shop or
establishment in which ten or more employees are/ were employed on any day during the preceding
12 months. The Act continues to be applicable to any establishment or institution even if the number
falls below 10 subsequent to its coverage. Central Government may by notification extend the
coverage to any establishment/institution.
In your case, even if your company's employee becomes less than 10 once the payment of gratuity is liable, they have to pay even the number goes below 10.

Dear Nilesh,
In case of termination, it may depend on the Certified standing orders of the company.
The payment of Gratuity may be forfeited as per the Standing Orders of the Company.
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A standing order cannot violate Payment of Gratuity Act, please correct if I am wrong

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Dear Seniors
please clear following points.
1. if any employee has died before completed of 5 years service then will he eligible for gratuity. how many days service is required for entitlement of gratuity.
2. Gratuity calculation will be only on basis salary or Basis+DA?.

Yes, in case of death, a person is entitled for Gratuity. Even if he has not completed 5 years service.
If person is alive, minimum 5 years continuous service is required.
If DA is part of the salary then basic + DA otherwise basic only.

Thanks for reply Govind Sir
but my Question was how many days service is required for gratuity in case of death.
suppose that an employees has joined 01 October 2014 and suddenly he has died dated on 08 November 2014. is he entitled for gratuity.
please clarify.

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