How Is Gratuity Calculated After Switching from Full-Time to Part-Time? Seeking Guidance

Hi All,

Could anyone help me to get the details and policies to understand the Gratuity calculation procedure? I worked for the company for 8 years as a full-time employee and then later, due to personal problems, I converted to a part-time employee and served for another year. Consequently, my salary was also revised by 50%. Now that I am eligible for Gratuity, I am unsure about the calculation.

I would appreciate it if anyone could forward me an appropriate link to review government policies for understanding the calculations.

Regards

Gratuity is calculated based on the employee's salary at the time of leaving the company. Therefore, you will receive gratuity for the entire period, but the amount will be calculated based on the current salary only.

Regards,
Madhu.T.K

Dear colleague, what Mr. Madhu TK has stated is the correct legal position regarding the calculation of gratuity based on the last salary at the time of leaving.

However, since your longer period of service was full-time and the last year was only part-time, you may request the company to revisit the calculation separately for the eight years' full-time stint and the one-year part-time stint. If they accept, that's great. Otherwise, although it may seem unfair, you will have to abide by the law.

Regards,
Vinayak Nagarkar

HR and Employee Relations Consultant.