Am I Really Ineligible for Gratuity After 4 Years and 265 Days? Seeking Clarity on Calculation Methods

@jayP
I have a query regarding my gratuity. I was working with a multinational company in Pune. I have completed 4 years, 8 months, and 25 days during my tenure in the organization, totaling 1729 days. According to labor law, one should have completed 4 years and 240 days to be eligible for gratuity. I have completed 4 years and 265 days, which fulfills the requirement for gratuity. However, the HR executive informed me that I am not eligible for gratuity as I have not completed 4 years and 8 months based on their calculation.

Gratuity Calculation Method

My date of joining was December 12, 2008, and my date of leaving was September 5, 2013.

The way they are calculating the gratuity is by dividing the total number of days by 365 days in a year, for example:

= 1729/365 = 4.7369 = 4.74 months

According to their calculation, I have completed 4.74 months. They claim that I should have completed 4.8 months to be eligible for gratuity, even though I have completed 4 years, 8 months, and 25 days.

My Questions

1) Are they calculating gratuity correctly according to government labor laws?

2) Am I eligible to receive my gratuity from the organization?

My email id is: [Email Removed For Privacy Reasons]
Regards,
srihari2720
Gratuity Calculation Formula

The calculation of gratuity is based on the formula: (Basic + DA) x Number of Years x 15 Days per Year / 26 Working Days = The Amount. The eligibility for gratuity is 4 years and 240 working days.

Regards,
Srihari
fc.vadodara@nidrahotels.com
I have replied to this query earlier also. The calculation, as you mentioned, is 4.74 years and not months. Now, if you calculate 4.74 years with 12 months, it would be 56.88 months or 4 years and 8.88 months, which is equivalent to 4 years and 9 months. The HR must be aware of this fact but seems to be avoiding addressing it directly.
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