When Will I Get My Gratuity and How Much Should I Expect After Resigning?

After how much time will I receive my gratuity amount from my employer, and how much will it be? I resigned from my post on 15 Dec. 2011. I worked with this company for 6 years and 1 month, and my last basic pay was $8500.

Please let me know the procedure for receiving my gratuity and the amount I am entitled to. Thank you.

This is the monthly basic salary. Actually, I want to know, after how much time I'll get my gratuity amount?

But I got Full & Final in the first week of January. However, my HR head said that first they receive your Gratuity cheque from LIC, and then we'll transfer the funds to your bank account. Is it correct? If yes, then how much time will it take? Kindly guide me.

As per the Gratuity Act, the employer has to settle the gratuity within one month of quitting or filing the claim form with your employer. If there is a delay, they should settle with up-to-date interest. If you require it urgently after the due date of one month, you should lodge a complaint in the prescribed form to the appropriate designated authority under the Gratuity Act for redressal.

Regards,
Kumar. S.

You will get gratuity as follows:

Gratuity Calculation

Basic salary Rs. 8500/26 days x 15 days per year x 6 years = Rs. 29,423/-

(Provided, you should have worked for 240 days each year)

Regards,
D. Gurumurthy
LL, HR & IR Consultant

A person retired on 31st December 2011 after completing 60 years of service in a Public Sector Bank. The ceiling for maximum gratuity is 10 lakh. Could you please explain how he will receive the gratuity amount?

Regards,
Anand

I think there is a correction; it should read as 60 years of age (instead of 60 years of service).

Gratuity Schemes in Public Sector Banks

1. Public Sector Banks have their own gratuity schemes/rules. If so, some key parameters are required to compute the gratuity amount.

2. Date of joining & last date of duty/date retired, last pay drawn, what is the gross salary as per the gratuity scheme (some employers' schemes provide for the average salary of the 12 months preceding the retirement), the number of years/days worked in the terminal year, etc., are also required.

Regards,
Kumar S.

Gratuity can be released within one month; otherwise, the employee has the right to lodge complaints with the competent authority, and they will have to pay with interest.

Regards,
Arun

Gratuity Payment Timeline and Calculation

Employees receive their gratuity from their employers either in full and final settlement or within a month. If not, the employee has the right to approach the area labor inspector with a complaint.

Gratuity Calculation Method

Gratuity is calculated as basic salary divided by 26, multiplied by 15, and then multiplied by the number of years of service. In your case, your gratuity would be calculated as 8500/26*15*6 = 29423/-.