How Do You Calculate Gratuity for an Employee Dismissed After 3 Years?

Hi,

Please calculate the gratuity for an employee whose basic salary is $670 per month and who was dismissed after serving for 3 years.

Thanks,
Siginjo 😕

Dear,

First, you have to clear your query. You have to specify which country you want to know about because in India we do not have the dollar as currency.

Hi all,

I want to clarify one thing: if an employee has worked for a company for 4 years and 10 months, is he eligible for gratuity?

Dear Kaushik,

No, he is not eligible for gratuity. An employee should complete five years of working to qualify for gratuity.

Regards,
Sheetal

I think he is eligible for gratuity as the Madras High Court has given an order in his favor. Please find enclosed the copy of that.

Thanks,
Sahil

Hi,

Please specify the country because you have mentioned the currency as in dollars. An employee should complete at least five years to be eligible to claim for gratuity.

Regards,
Julie

Dear Siginjo,

I think in your case, when you are sending out a person, you need to pay some compensation on it as per the Principles of Natural Justice. Let me tell you the Gratuity Calculation: Last Drawn Salary X 15 Days X No. of Years/26 Days.

Thanks & Regards

Hi,

In this case, the employee is not eligible for gratuity. I am enclosing an article on gratuity. This will help you understand the concept better.

Regards,
Mansi

Dear,

It depends on what grounds he has been dismissed. Otherwise, if a person is discharged from services by his employer before the completion of five years, the employee is entitled to gratuity. The calculation is the same: Last Salary * 15 / 26 * No. of years of service.

670 / 15 * 26 = 386.54

386.54 X 3 = $1159.62

After serving for 3 years, a person is not eligible for gratuity. It is applicable only after 5 years of continuous service.

Regards,
Manoj Urma
Brajrajnagar
Jharsuguda

An employee is eligible for gratuity only after rendering continuous five years of service. Hence, in the present case, there is no question of the payment of gratuity.

Thanks,
M.L. Barber