Gratuity Fund Application: How Long After Leaving a Job Can You Apply?

After being relieved from service, for how long a period can we apply for the gratuity fund? (i.e., after being relieved for 3 years)

Thanking you.

With regards,
Bala

Welcome to CiteHR. What is the management saying to you regarding this period? You may go through the rules, regulations, and constitution of this gratuity fund.

Thank you.

Regards,
R.N.KHOLA

Dear Bala, your query is very short, and hence, I can't understand what exactly you wish to know. If your service has been terminated by any means before 5 years, then you are not entitled to gratuity. If your service has ceased after 5 years, then only can you file your claim for gratuity with the controlling authority in your area under The Payment of Gratuity Act within 2 years. You mentioned a 3-year period after leaving the services; if so, you have to submit a request for condonation of delay with proper reasons. Only then will your application be considered.

Regards,
KIRAN KALE

Regarding How to Calculate Gratuity Amount and How to Apply the Method of Gratuity Fund

To calculate the gratuity amount, you typically use a formula based on the number of years of service and the last drawn salary. The formula is: (Last drawn salary x 15 days x number of years of service) / 26.

To apply the method of a gratuity fund, you need to set up a fund where regular contributions are made by the employer. These contributions are invested in a way that ensures there are sufficient funds available to pay out gratuity to employees when they become eligible.

If you need further assistance or more detailed information on calculating gratuity or setting up a gratuity fund, feel free to ask.

Understanding Gratuity

Gratuity is an amount given to employees by the employer when they leave the job after completing five years or a minimum of 240 days per year, or after retirement. The number of years may differ from company to company.

Gratuity is payable under the Payment of Wages Act.

Gratuity shall be payable to an employee on the termination of their employment after they have rendered continuous service for not less than five years: (a) on their superannuation, (b) on their retirement or resignation, or (c) on their death or disablement due to an accident or disease.

Gratuity is calculated as Basic + DA divided by 26, multiplied by the number of years of service, and then multiplied by 15.

Regards