Maternity Leave and Gratuity: Is It Counted in Your Benefits Calculation?

Hi Deeksha,

Whether maternity leave is included in the calculation of Gratuity?

Regards,

Deeksha

Deeksha,

Maternity leave must be included when calculating the Gratuity days.

Mano Kavin

Dear Deeksh,

You will calculate all paid leaves, whether it is PL/EL, S/L, C/L, or Maternity leave, as well as week off and holidays for calculating the gratuity. Only LOP will be excluded while calculating Gratuity.

Regards, Bandini.

Dear All,

Absenteenism, if punished through proper order, is considered a break in service and hence not taken into account when calculating the 240 days required for Gratuity calculation. Maternity Leave is not considered a break in service, and therefore, it should be included in the calculation of the 240 days needed for Gratuity under the Payment of Gratuity Act.

I hope this information is helpful.

Regards,
Rajpal

LOSS OF PAY (LOP)

1. LOP can be applied by an employee when no other leave is available.

2. During the period of LOP, the employee is not entitled to any pay or allowance.

3. A maximum of 3 months of LOP can be availed with the approval of the management.

4. If the employee fails to report to duty on the specified date after the sanctioned LOP, it is deemed that the employee has abandoned his service with the company of his own accord.

5. LOP can be imposed on disciplinary grounds with regard to attendance by the management regardless of the availability of other types of leave.

6. LOP days will not be counted towards EL eligibility.

Regards,
Uttam

Dear Mr. Rajpal,

Will you please highlight the calculation (240 days) in relation to gratuity calculation.

Regards,
Rajesh Chakraborty

Absenteenism, if punished through proper order, is considered a break in service; hence, it is not included in the calculation of 240 days for gratuity calculation. Maternity Leave, on the other hand, is not considered a break in service and should be included when determining the 240 days required for gratuity under the Payment of Gratuity Act.

Hope this provides you with some assistance.

Regards,
Rajpal

Hi Deedsha,

The period of 'maternity leave' is included by all means for calculating gratuity. Besides this, all other leaves for which salary has been paid to the employee are also considered for calculating the gratuity as per the 'Payment of Gratuity Act.'

- Kashinatham Chitturi

As most of our friends quoted, "Maternity Leave" is allowed for computing Gratuity provided that maternity leave was availed for 6+6 weeks per company's policy, whichever is applicable.

Thank you.

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