KK!HR
Management Consultancy

Dear Experts,
How to calculate gratuity in the case of employee service is 5 years & 6month, i.e need to consider round service or not for calculation. Please give the Law reference with clause number for if calculation in round service
Regards,
Avinash Sankpal
30th January 2018 From India, undefined
As per Section 4 (2) of Payment of Gratuity Act 1972, Gratuity is payable for completed years of continuous service and continuous service in excess of six months is treated as a completed year. Section 4 (2) is extracted below:
(2) For every completed year of service or part thereof in excess of six months, the employer shall pay gratuity to an employee at the rate of fifteen days' wages based on the rate of wages last drawn by the employee concerned:
30th January 2018 From India, Mumbai
Thank you Expert for your kind reply
As per the above section 4(2) if employee service is 5 years & 6 months its to be consider as a 6 years for gratuity calculation
And in the other hand if employee service is 5 years & 5 Months that time we have to calculate on 5 years only, so is it correct or wrong
please revert for clear doubt with law reference
30th January 2018 From India, undefined
It has to be in excess of six months, that is the import of Section 4(2). Just six months would not add up to one additional year. So obviously 5years and 5 months would qualify for only 5 years continuous service as per the Act.
30th January 2018 From India, Mumbai
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