Understanding Gratuity: Eligibility, Salary Limits, and Switching Companies

Hi,

Please help me with gratuity calculation. Who is eligible for gratuity? Is there any salary limit for that? If an employee completes 6 years in XYZ company, takes his gratuity, and leaves the organization, would the same employee be eligible for gratuity in ABC company if he joins there?

Thank you.

Gratuity Calculation:

For example:
Basic = 3000
Number of years in service = 10 years
= 3000 * 15/26 = 1730
= 1730 * 10 years = 17300

This amount should not exceed 1000000.

Thanks Tagore, but my question is: if an employee completes his 6 years in XYZ company, takes his gratuity, and leaves the organization, would the same employee be eligible for gratuity in ABC company if he joins there? Please clear my doubt.

Dear Member,

The same employee will also be entitled to have gratuity from ABC company if he serves this establishment for a minimum period of five continuous years.

Regards,

R.N. Khola

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