Can I Claim Gratuity and Bonus for My Full Employment Period Until June 2015?

Dear Sir,

My name is Santosh Mane. I was working in a Pvt Ltd company from 11th September 2008 to 25th June 2015. Can I claim for gratuity and bonus up to 25/06/2015? My company told me that I would receive the bonus and gratuity only up to March 2015. I have completed my notice period as well. My basic salary is 5800/-. Please help me.

Thank you.

Dear Santhosh Mane,

You are eligible to receive a bonus and gratuity up to the 25th of June 2015. If these are denied, kindly contact the Labour Department/Authorities.

Abbas. P.S

You will receive your bonus amount by the last working date. For the FY 2015-16 (3 months), the employer may pay after closing the financial year, i.e., according to the Bonus Act and provisions.

Gratuity Payment Details

Now, in the case of Gratuity, it may be possible to pay after 2 months if your company has taken some scheme; otherwise, they will pay the full amount of gratuity within 30 days as per the act (15 days salary per year).

Your Gratuity amount will be as follows:
- Your entitled period: 6 years, 9 months, which means the payment will be for 7 years.
- Amount: Rs 23423/- only

Please submit Form I immediately to your employer.

Regards

Dear Sir, As per my calculation, the following amount is payable from the employer. Is it correct or incorrect? Please clarify.

Employee Name: Santosh Mane
Employee ID: A-082

Date of Joining: 11/09/2008
Department: Accounts

Date of Leaving: 25/06/2015
Designation: Asst. Manager

PF No.: MH/34880/116
Basic Amount: 5,800/-

Birth Date: 11/08/1977

************************************************** ********************************************
Particulars
************************************************** ********************************************
Gratuity 2014-15: 22,085
Gratuity 2015-16: 1,004
Bonus 2014-15: 5,798
Bonus 2015-16: 1,450
Salary June 2015: 13,604
---------------------------------------------------------------------------------------------------------------
(A) Net Amount Payable: 43,941
---------------------------------------------------------------------------------------------------------------
Less (-) Net Salary June 2015 (Cheque No.017739 Dtd 05/09/2015): 13,604
Less (-) Bonus 2014-15: 5,798
---------------------------------------------------------------------------------------------------------------
(B) Payment Received: 19,402
================================================== ==============
(A-B) Balance Amount Pending: 24,539
================================================== ==============
Gratuity 2014-15: 22,085
Gratuity 2015-16: 1,004
Bonus 2015-16: 1,450
=================================
PENDING FOR PAYMENT: 24,539
=================================

Please check on your end and revert back.

Thanking you,

Yours faithfully,

Santosh Mane
[Phone Number Removed For Privacy Reasons]

Mr. Santosh, herewith I attach the Gratuity form I.

FORM ‘I’
[See sub-rule (1) of rule 7]

Application of Gratuity by an Employee

To …………………………………………

[Give here the name or description of the establishment with full address]

Sir/Gentlemen,

I beg to apply for payment of gratuity to which I am entitled under sub-section (1) of section 4 of the Payment of Gratuity Act, 1972, on account of my superannuation/retirement/resignation after completion of not less than five years of continuous service/total disablement due to accident/total disablement due to disease with effect from the ………… Necessary particulars relating to my appointment in the establishment are given in the statement below:

Statement

1. Name in full.
2. Address in full.
3. Department/Branch/Section where last employed.
4. Post held with Ticket No. or Serial No., if any.
5. Date of appointment.
6. Date and cause of termination of service.
7. Total period of service.
8. Amount of wages last claimed.
9. Amount of gratuity claimed.

I was rendered totally disabled as a result of [Here give Detail].

Payment may please be made in cash/open or crossed bank Cheque.

As the amount of gratuity payable is less than Rupees one thousand, I request you to arrange for payment of the sum to me by Postal Money Order at the address mentioned above after deducting postal money order commission therefrom.

Yours faithfully,

Place:
Signature/Thumb impression of
Date: the applicant employee.

Note:
1. Strike out words not applicable.
2. Strike out paragraph or paragraphs not applicable.

Mr. Santosh Mane,

You will receive gratuity only if your company has ten or more employees. For statutory bonus, your company should have at least ten or more employees working in the company if it is a factory. If it is not a factory, it should have twenty or more employees.

Varghese Mathew
04712542059, 9961266966

Gratuity and Bonus Calculation

Gratuity and bonus work in a different manner from what you have computed. Gratuity is 15 days of the last drawn salary for every year of completed service without a break. Since you have worked for 6 years and 9 months, that will be: ₹5800 x 15 / 26 x 6.

Bonus is at 8.33% of the salary subject to a maximum of ₹3500 per month as salary. So for 2014-15, it is ₹3500. For 2015-16, it is ₹3500 x 3 x 8.33% (which is ₹875).

So if your company is giving the gratuity and bonus till March 2015, the only difference is ₹875. So don't bother and leave with a good impression.

Dear Santosh,

Can you please provide your Last Pay Drawn (at the time of leaving) with a breakdown, and on a monthly basis, the Gross salary breakdown showing all components such as basic pay, DA, other allowances, etc., for the preceding twelve months? This information will help us determine your entitlement accurately.

Thank you.

The gratuity calculation was done by our member, Mr. Rajesh Kumar Dubey. Bonus for the period 2015-16 shall be payable after the closure of the books. As far as gratuity is concerned, it should be settled within a month after submission of your I form to the employer.

Nowadays, most employers are investing in LIC's Group Gratuity Scheme, and LIC settles the amount within a week's time to the Employer's Scheme account through RTGS/NEFT after submission of the employee's details to the concerned scheme. A methodical approach is always best for your settlements.

Regards,
Ravi.

No, it's not 6 months rounded off to a year. The act very specifically says years of completed service. He has to work more than 240 days in the year. He has worked 287 days, so to that extent you are right to add another year of gratuity.

As you can claim gratuity since your service is more than 5 years, gratuity can be claimed. Additionally, as you mentioned that the basic salary is Rs. 5800/-, a bonus can also be claimed.

Thanks & Regards,

Sumit Kumar Saxena

Mr. S. Banerjee,

Gratuity calculation and entitlement are two separate issues. Please do not mix them. The calculation I have done for 7 years is completely accurate.

You have denied it, but Mr. Abbas has confirmed, which means you should once again check the details if possible on your end.

Thank you.

Gratuity Calculation Under the Gratuity Act

Kindly see Section 4, subsection 2 of the Gratuity Act as follows:

"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."

Accordingly, service of more than 6 months will be treated as one year for gratuity calculation. The minimum eligibility is 240 days per year (for the first 5 years).

Hence, the gratuity amount in this case is 5800 x 7 x 15 / 26 = Rs. 23,423.

Regards,
Abbas. P. S