When an employee has completed Five years of his continuous service with an organization and in the sixth year he worked for 7 months and 10 days only, as per rule of Gratuity payment Act shall we round off to Six-year or to calculate for 5 years?
Dear
For any calculation regarding final settlement we have to consider only completed year and rounding off will not be accepted. But for the benefit of the ex-employee if your rules permits the Government will not object your company to pay any additional payment/ex-gratia/monetay benefits/gifts.
With warm regards
S. Bhaskar
Dear Friend
As per Payment of Gratuity Act, 6 months and above is rounded off to one year. For your example, you had to calculate for 6 years.
Regards
BHAVAN
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