Curious About Gratuity? Here's How to Find Out What's Owed to You After 8 Years

Understanding Gratuity

Gratuity is a benefit provided to employees who have completed a certain period of service in a company. I'm currently working for more than 8 years in a firm, and I need to know the amount of gratuity due to me.

Where is Gratuity Deposited?

Typically, the gratuity amount is deposited in a designated account or fund managed by the employer. It is important to check with your HR department for specific details regarding the deposit process in your organization.

Gratuity is an accumulated amount that we receive from the principal employer after resigning from the company. However, your working period should not be less than 5 years. According to the calculation, if you have worked for 8 years, then the amount you will receive is: Basic pay/26 * 15 * Number of years. Seniors, please confirm if I am not wrong.

Gratuity Calculation Formula

I feel this is the formula for the computation of Gratuity:

\[ \left( \frac{15}{26} \times \text{last drawn basic salary} \times \text{number of continuous years of service} \right) \]

(In your case, this will be 8 if you have worked for 8 years).

As per Gratuity rules, you will receive the amount calculated as follows:
- Basic pay
- Number of working days (26 days)
- Half-month salary (15 days)
- Years of service (8 years as you mentioned)

Any person is eligible for gratuity if they work for more than 4 years, 10 months, and 11 days. Therefore, you are now eligible for gratuity.

Mr. Rohan, Same thing which I have mentioned there, you also repeated the same. I asked there to correct me if I am wrong.

Mr. Shama ji, Definitely, the person will be eligible for gratuity because he has worked for 4 years, 10 months, and 11 days, which will be counted as 5 years. However, gratuity is calculated based on a person working for 240 days in a year and 5 days a week. Therefore, in 5 years, he should work for 1200 days. According to you, he has worked for 4 years, 10 months, and 11 days, so he is definitely eligible for gratuity.

Please go through all the related links provided on your screen; you will find more than enough materials. Also, note that gratuity becomes due only when an employee is leaving the employer after completing a minimum qualifying service of 4 years and 240 days in the fifth year.

All newcomers are requested to exhaust all the research options provided in this forum before opening a new post or query.

Regards