In reference to your query, I wish to clarify that it does not matter when the Payment of Gratuity Act, 1972, was made applicable to your establishment. Rather, it is more important that the Act is applicable on the day you decide to leave. In your case, the following are the sections or rules which have applicability:
Section 2(s)
"Wages" means all emoluments earned by an employee while on duty or on leave in accordance with the terms and conditions of his employment, which are paid or payable to him in cash. This includes dearness allowance but does not include any bonus, commission, house rent allowance, overtime wages, or any other allowance.
Section 3(b)
The Act is 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, either 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 follows:
[Basic Pay + D.A] x 15 days x No. of years of service / 26
Where D.A = Dearness Allowance.
Since you joined your establishment on 01 May 1999 and have decided to leave on 31st May 2014, you have completed 15 years and one month. Thus, you shall be entitled to Rs 285,577 by applying the formula of [33,000 + 0] x 15 days x 15 years / 26.
Regards,
BS Kalsi
Member since Aug 2011