Dear Pratik,
As already told to you by Mr. Dhingra you are eligible for gratuity. It is true that one need to complete 5 years of continuous service to be eligible for gratuity. However if we see the definition of a continuous service it says that 1 continuous year comprises of 240 days of service. So when you completed 4 years and 11 months you passed the eligibility.
This ratio is given in the Madras High Court Judgment of Mettur Beardsell Ltd. Vs. Regional Labour Commissioner. wherein Justice S. M. Abdul Wahab settled that one who completes 4 years and 240 days is eligible for gratuity.
Now coming to the query of Mr Sougat Das, even if a company works for 22 days a month the gratuity shall be calculated by dividing it by 26. The formula is given below
Gratuity Calculation= [ (Basic Pay + D.A) x 15 days x No. of years of service ] / 26
Where, D.A = Dearness Allowance.
lets see an example
Gratuity Calculation
Calculate gratuity amount, given Basic Pay = 17500, DA = 1500 and Years of Service = 25
Solution :
Gratuity = ( ( 17500 + 1500 ) * 15 * 25 ) / 26
= ( 19000 * 375 ) / 26
= 7125000 / 26
= 274038.461
Therefore, gratuity amount is 2,74,038.461
and if you divide the same by 22 the amount of gratuity shall be
=7125000 / 22 = 3,23,863.64
Wish is all yours i will not stop you from paying at higher rate and neither do Gratuity Act. Under Section 4 Sub Section 5 it is given that and i quote "Nothing in this section shall affect the right of an employee to receive better terms of gratuity under any award or agreement or contract with the employer.".
So if you want to give more you are most welcome. However mind it, if you tried to pay Gratuity on higher side that shall become customary and you will have to pay the same in the same fashion to others too. Hope that clears your Doubts. Feel free to revert if any further query.
As already told to you by Mr. Dhingra you are eligible for gratuity. It is true that one need to complete 5 years of continuous service to be eligible for gratuity. However if we see the definition of a continuous service it says that 1 continuous year comprises of 240 days of service. So when you completed 4 years and 11 months you passed the eligibility.
This ratio is given in the Madras High Court Judgment of Mettur Beardsell Ltd. Vs. Regional Labour Commissioner. wherein Justice S. M. Abdul Wahab settled that one who completes 4 years and 240 days is eligible for gratuity.
Now coming to the query of Mr Sougat Das, even if a company works for 22 days a month the gratuity shall be calculated by dividing it by 26. The formula is given below
Gratuity Calculation= [ (Basic Pay + D.A) x 15 days x No. of years of service ] / 26
Where, D.A = Dearness Allowance.
lets see an example
Gratuity Calculation
Calculate gratuity amount, given Basic Pay = 17500, DA = 1500 and Years of Service = 25
Solution :
Gratuity = ( ( 17500 + 1500 ) * 15 * 25 ) / 26
= ( 19000 * 375 ) / 26
= 7125000 / 26
= 274038.461
Therefore, gratuity amount is 2,74,038.461
and if you divide the same by 22 the amount of gratuity shall be
=7125000 / 22 = 3,23,863.64
Wish is all yours i will not stop you from paying at higher rate and neither do Gratuity Act. Under Section 4 Sub Section 5 it is given that and i quote "Nothing in this section shall affect the right of an employee to receive better terms of gratuity under any award or agreement or contract with the employer.".
So if you want to give more you are most welcome. However mind it, if you tried to pay Gratuity on higher side that shall become customary and you will have to pay the same in the same fashion to others too. Hope that clears your Doubts. Feel free to revert if any further query.