Gratuity Calculation Help: Do Private Companies Offer It After 5 Years of Service?

Dear All,

Can anyone help out in the calculation of gratuity? Does a private company provide it if we complete 5 years?

Dear,

Applicability does not have any concern with private limited, public limited, partnership concern, or proprietary concern.

Thank you.

JS Malik

Dear Pallavi,

We are also to consider the DA along with Basic while calculating the amount of gratuity. Please go through the definition of wages under the Payment of Gratuity Act, 1972.

Regards, R.N.Khola

Skylark Associates, Gurgaon (Haryana) 09810405361

As gratuity is applicable to those employees who have completed continuous 5 or more years of service. They should have worked 240 days in every year. Gratuity is payable at 15 days for every working year.

Dear Seniors,

Please clarify for me:

If an employee has worked in an organization for 8 years. For the first and second years, he worked for more than 240 days. In the third year, he worked for fewer than 240 days, and for the rest of the continuous five years, he worked for more than 240 days. Could you please clarify whether gratuity is payable? If so, for how many years – for 5 years or for 7 years?

Dear Member,

In your case/query, the employee has worked for 8 years continuously. He is eligible for payment of gratuity, leaving behind only one year in which he has not put in 240 days of work for entitlement to gratuity for that particular year. This cannot be considered as a break in service. Therefore, this employee will be entitled to 7 years of gratuity.

Opinion submitted as per your request.

Formula: Current Basic x Number of Completed Years x 15 / 26

Current Basic refers to Basic + DA.

Dear Pallavi,

Please see the attachment. I hope it is useful to you.

Regards,
Bhavesh

Dear Pallavi,

Please see the attachment for the Gratuity calculation :). I hope it is useful to you. :)

Thank you.