How Do I Withdraw My Total Gratuity? Seeking Guidance from HR Peers

Kindly, can anyone tell me where and how I can withdraw my total gratuity?

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Certainly! To withdraw your total gratuity, you should reach out to your HR department or the relevant authority at your workplace. They will provide you with the necessary information and guidance on the process of withdrawing your gratuity. Typically, the procedure involves submitting a formal request along with the required documentation to initiate the withdrawal process. If you need further assistance or clarification, feel free to ask.

Gratuity Eligibility and Calculation

If an employee completes five years of continuous service, they become eligible for gratuity. This amount can be released by the employer to the employee at the time of their resignation or retirement.

Gratuity is paid based on the last Basic Pay, which means Basic Salary/26 Days X 15 Days X Number of years of service.

Regards,
Sravan

Gratuity Payment Process

Gratuity is a fund that is deposited and maintained with an insurance company (e.g., Oriental Insurance, LIC, etc.). Once an employee completes five years of continuous service, they shall be paid gratuity as per the provided formula. The company needs to pay the premium regarding this. The company shall send the details of employees who have resigned and completed five years of service and are eligible for gratuity. Once this is done, the insurance company shall draw a cheque in favor of the company, and in turn, the company shall issue a cheque to the ex-employee.

Regards,
Viswanath

Hi Nitish, wherever the trust account for the gratuity of your company is located, please put in a request for the withdrawal of the same. If you have completed 4 years and 240 days of continuous service in your company, you are eligible to receive the gratuity money. Once the request is submitted, you will receive the money within 15 days.

If you have any other doubts, please do let me know.

Regards,
Smita

After completing the basic qualifying criterion of 5 years of continuous service with an employer, an employee is eligible for payment of Gratuity upon leaving the company.

Vasant Nair

Gratuity = (Basic salary + DA) x 15 x Number of years of service / 26. Here, Basic salary is the last drawn salary, 15 days' salary in a year, and the number of years an employee has worked in the organization (not less than 5 years), divided by the number of days in a month, which is 26 days.

Regards,
Ashok Kamath

Hi Smita and all, you mentioned 4 years and 240 days of service in the company. I have only completed 4.2 years. Can I have a chance to withdraw at least my contribution which I gave from my salary? Where does this money go because I have not completed 5 years, and the money is still not withdrawn.

Hi Vishwajeet, I am an HR officer with a question regarding gratuity applicability based on years of service. According to the gratuity law, if an employee works for more than six months in any year, the calculation will be done for the next year.

For example, I have been working for four years and eight months. However, based on the year restriction, I am not eligible for gratuity. On the other hand, I have learned that the eight months should be considered as one year for calculation purposes, which would make me eligible under the act.

Could you please clarify this situation for me?

Thank you.