Pradeep Kumar Sinha
Sir, I am willing to take retirement form organization which I work for more than 5 yrs is I am entitled to get gretutity from organization. When joined my age was 57 now I am about 62 yrs of age.

PROFESSIONALS AND BUSINESSES PARTICIPATING IN DISCUSSION
Vmlakshminarayanan
Sr.manager - Hr&admin
Pradeep Kumar Sinha
Civil Engineering

vmlakshminarayanan
518

Hi,

According to the Gratuity Act 1972, an employee is eligible to receive a gratuity amount after completing five years of continuous service at one organisation.

The gratuity amount is paid to the employees once they retire, resign, or are laid off.

According to Section 4 of the Gratuity Act, in case of termination of a job due to death or disability, the condition of five-year continuous service is not applicable.

In case of the death of an employee, the gratuity amount will be paid to the nominee or the legal heir.

The Gratuity Act 1972 applies to all organisations, including factories, mines, oil fields, plantations, ports, railways, motor transport undertakings, companies, shops and establishments employing more than 10 workers.

According to the existing norms, the employee can apply for the gratuity amount within 30 days from when it becomes payable.

An employer cannot reject an application even if it's filed after 30 days.

The employer will have to specify the amount payable and the payment date within 15 days after receiving the application for the gratuity amount.

The employer will have to specify the reason for rejecting an application for a gratuity in case of the rejection of the application.

Gratuity Calculation:

The gratuity amount earned by an employee depends upon the tenure of the service and the last drawn salary. It is calculated based on the basic salary and dearness allowance.

For gratuity calculation, every month is considered 26 days for the organisations covered under the Gratuity Act 1972.

Gratuity is paid for every 15 days for each completed year of service. In the last year of employment, if an employee serves for more than six months, it will be rounded off to the next number.

Formula to calculate gratuity: Last drawn salary (basic salary plus dearness allowance) * number of completed years of service * 15/26.

From India, Madras
vmlakshminarayanan
518

Hi, so you are very much eligible for Gratuity payment from your employer.
From India, Madras

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