No Tags Found!
Hi all

My staff has 14yrs of service in the private institiution. He relieved the institution long back . Now he is asking for gratuity amount.

Can you give your insights whether he is eligible for gratuity and the calculation for the above service.


From India, Coimbatore
Agm - Hr&admin
Pocket HRMS
Human Resource Solutions



14 years service is definitely eligible for Gratuity.

The employee should have applied for Gratuity within 30 days from the date of his relieving. An employer, however, is not allowed to turn down an application from the employee after the expiry of 30 days if the delay is due to a valid cause. The rules also suggest that no claim for gratuity shall be regarded as invalid, simply because the individual did not file his or her application during the specified period.

From India, Madras
Pocket HRMS

Yes, your staff is eligible for gratuity. The Gratuity Act, of 1972, is a central legislation that provides for payment of gratuity to employees who have rendered continuous service for at least five years in any establishment.

The gratuity amount is calculated as follows:

1. The last drawn salary is the basic salary plus dearness allowance and any other allowances that are admissible under the Payment of Gratuity Act, 1972.
2. Tenure of service is the total number of years of service, including the fraction of a year. If the employee has worked for more than six months in a year, then the entire year is counted as a year of service.
3. 26 is the number of working days in a month.

The maximum gratuity amount that can be paid is Rs. 20 lacks. Any amount above Rs. 20 lacks will be treated as an ex-gratia payment.

From India, Dombivali
Community Support on business, career and organisational prospects and issues - Register and Log In to CiteHR and post your query, download formats and be part of a fostered community of professionals.

Contact Us Privacy Policy Disclaimer Terms Of Service

All rights reserved @ 2023 CiteHR

All Copyright And Trademarks in Posts Held By Respective Owners.