Dear Soman,
I am sorry I was in process of contributing to the thread and meanwhile by mistake the incomplete mail has been posted on the thread.Please find below the complete thread.
In reference to your query,I wish to clarify that it does not matter as to when the Payment of Gratuity Act,1972 was made applicable to your establisment rather more important is that the Act has its applicatation on the day when you have decided to leave. In your case the following are the Section or Rules which has its applicapabilty:-
Section 2(s)- "wages" means all emoluments which are earned by an employee while on duty or on leave in accordance with the terms and conditions of his employment and which are paid or are payable to him in cash and includes dearness allowance but does not include any bonus, commission, house rent allowance, overtime wages and any other allowance.
Setion 3(b)-The Act applicable to every shop or establishment within the meaning of any law for the time being in force in relation to shops and establishments in a State, in which ten or more persons are employed, or were employed, on any day of the preceding twelve months.
Section 4(1) (b)-Gratuity shall be payable to an employee on the termination of his employment after he has rendered continuous service for not less than five years (b) on his retirement or resignation.
Section 4(2)- For every completed year of service or part thereof in excess of six months, the employer shall pay gratuity to an employee at the rate of fifteen days' wages based on the rate of wages last drawn by the employee concerned :
The formula for the calculation of gratuity shall be as under :-
[Basic Pay + D.A) x 15 days x No. of years of service ] / 26 Where, D.A = Dearness Allowance.
Since you joined you establishment on 01 May 1999 and have decided to leave on 31st May, 2014 as such you have completed 15 years and one month.Thus you shall be entitled to Rs285577/-- by apply the formula of [33000/-+ 00) x 15 days x15 years] / 26.
BS Kalsi
Member since Aug 2011