Did I Get the Right Gratuity? Seeking Advice on Missing Benefits and Next Steps

Hi all, I am Ashok. I was working in a manufacturing company for 22 years. When I left the company, I received only Rs. 95,000 as gratuity. At that time, my salary was Rs. 21,000, and my basic salary was Rs. 12,000. It has been almost a year since I received this amount, but I was unaware of how much gratuity I should have received. Recently, a friend informed me that I did not receive the full amount of gratuity.

Questions About Gratuity and Benefits

1) I would like to ask you seniors what the correct amount I should have received is.
2) If the gratuity amount I received is not the full amount, please suggest what steps I should take to claim the remaining amount and the process to follow.
3) During my full and final settlement, I only received my PF and gratuity amounts. Are there any other benefits that I should have received?

I am eagerly waiting for your kind suggestions.

Thanks,
Ashok
[Phone Number Removed For Privacy Reasons]

If you had served 22 years of service with the last basic amount of ₹12,000, then your gratuity amount is calculated as follows:

Gratuity Calculation

Gratuity amount = (₹12,000) * (15/26) * (22) [Last Basic * 15/26 * Years of service]
= ₹1,52,308

Thanking you,

Regards,
Ashish

Thanks for your support. Kindly let me know:

2) If this amount, which I got as gratuity, is not the full amount, then kindly suggest what I should do to get the full amount and what would be the process or right step?

3) At the time of my full and final settlement, I got only my PF and gratuity amount. Are there any other benefits that I should have received?

Waiting for your kind suggestions.

Thanks,
Ashok
[Phone Number Removed For Privacy Reasons]

Hi All, I am Ashok. I was working in a manufacturing company for 22 years. At the time of leaving the company, I received only Rs 95,000 as Gratuity. My salary then was Rs 21,000, with a basic salary of Rs 12,000. It has been almost a year since I received this amount, but at that time, I was unaware of the correct Gratuity amount I should have received. Recently, a friend informed me that I did not receive the full amount of Gratuity.

Correct Gratuity Amount

1) I would like to ask the senior members here what the correct amount I should have received is. As mentioned in an earlier post, with your last drawn basic salary of Rs 12,000 and having worked for 22 years, your Gratuity amount should ideally be:

(15/26) * 12000 * 22 = 152307.69, rounded off to 152308 or 152310 (depending on the company's policy). Since I received only Rs 95,000, I believe they only paid me for around 13-14 years.

Steps to Claim Full Gratuity Amount

2) If the Gratuity amount I received is not the full amount, kindly suggest what steps I should take to claim the full amount and the process involved. I recommend checking your salary slip for any deductions made. Though it has been a year, you can still reach out via email to HR, your ex-boss, and any other relevant parties for clarification on the calculation of your Gratuity.

Other Benefits During Settlement

3) During my full and final settlement, I received only my PF and Gratuity amount. Are there any other benefits that I should have received? Given your extensive experience, it seems like a retirement situation. PF and Gratuity are statutory entitlements you should have received. Additionally, based on the company's policy, there may be other benefits for employees with long tenures. Seeking advice from seniors is advisable.

Best of luck.

Petition to the Controlling Authority

Make a petition to the controlling authority designated under the POD Act by the government.

Regards,
Varghese Mathew

Mr. Ashok,

Please check your Full and Final details. Afterward, you need to come up with ideas for the full payment of gratuity.

Regards,
Nitin Sharma
[Phone Number Removed For Privacy Reasons]

Gratuity amount is provided to an employee when they are found to be in continuous service. If your service has been continuous, then you will be eligible to receive the full gratuity amount of ₹152,308/-.

Best regards,
Rahul Zodage
HR

Gratuity is payable only for your continuous service for years, subject to the completion of actual working days of 240. If you have not completed 240 days in any of the years, you are not entitled to gratuity for that year. Please check how many years you have not completed 240 days since your joining.

Thanks & Regards,
Kishor

Mr. Ashish has provided the correct formula. Now, we must discuss with the company's HR or Personnel department to resolve the issue.

Regards,

Gratuity Calculation

You have received a lesser gratuity amount. Please find the calculation below:

- **Per Month Basic:** ₹12,000
- **Yearly Basic:** ₹1,44,000 (Per Year)
- **Number of Working Years:** 22 Years (Basic amount for 22 years: ₹31,68,000)
- **As per Gratuity Act per year:** 4.81%
- **Gratuity Amount:** ₹1,52,381/-

Thanks & Regards,
Sai Pachange

Entitlement to Full Gratuity and Interest

If you received a lesser amount of gratuity due to a processing mistake, you are entitled to not only receive the balance amount of gratuity but also interest from the date of your separation up to the current date.

All the best.

Regards,
P. Radhakrishnan

Importance of Continuous Service for Gratuity

This is a very important clause. Were these 22 years of service "continuous"? Please re-analyze if there have been any breaks in service due to any technical reasons (such as a change of company or movement to sister concerns); disciplinary actions (such as long leave requiring re-issuance of appointment letter); company takeovers or changes in identity that altered the company name, structure, or entity.

What does your FnF statement state as your Date of Joining?

Please find below the clarification in reference to your query as follows:

Calculation - Gratuity Payment:

22 years of service with the last Basic amount of 12,000 Rs.

= (12,000) * (15/26) * (22) [Last Basic * 15/26 * Years of service]

= 1,52,308 /-

Steps to Take if Gratuity Amount is Incomplete:

If the gratuity amount you received is not the full amount, kindly suggest what steps I should take to receive the full amount and what the process entails.

You can email or submit your query to the management regarding the calculation of the gratuity amount being paid to you. If you do not receive a proper response from the management, you can approach the Assistant Labour Commissioner - State, who is the appropriate authority under the said act.

Other Benefits During Full and Final Settlement:

At the time of my full and final settlement, I only received my PF and gratuity amounts. Are there any other benefits that I should have received?

Apart from PF/Gratuity, there are no other benefits. There is no mention of Leave Encashment. Please check whether you are supposed to receive Leave Encashment as per the company policy.

Regards