Gratuity Paid from Actual Date Joining Itself or PF Deduction Date Itself?

Dear Genius,

Kindly explain if gratuity is paid from the actual date of joining itself or from the PF deduction date itself? Please let me know.

Thank you,
Vinoth - HRD

Dear Vinoth,

For the purpose of calculating Total Service under the Payment of Gratuity Act, 1972, you have to consider service from the date of joining until the date of leaving.

Hi,

Gratuity is paid upon completion of continuous service of 4 years and 240 days. The service period is calculated from the Date of Joining (DOJ) of the employee until the Last Working Day (LWD).

Hi Vinoth,

Why would the DOJ and PF deduction date differ? Both should be the same, unless you are exempted until such time while having fewer staff. If the registration is done late, you need to pay the contribution from the DOJ.

Check your AL, date of joining, and date of leaving.

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Sir,

Please tell me in which section/page number of the Gratuity Act I can find "date of joining is considered for gratuity calculation."

Please help me.

My name is Tanmay Patel. I joined my company on 01-01-2010 for a 12-month contract period. After that, on 01-01-2011, I entered a probation period. So, if I want to calculate my gratuity, what should be my joining date for the calculation of years for gratuity?

Dear Mr. Patel,

There is continuity in service. Consequently, for Gratuity calculation, your Date of Joining Establishment will be 01/01/2010.

Hi Tanmey Patel,

As per my knowledge, you were a contract employee, so there will be no deduction of gratuity from the company side; it would only be deducted by the consultant under whom you were employed. Therefore, gratuity will be calculated from 01-01-2011. However, please recheck with your HR team.

Gratuity will be calculated from 01-01-2011. This is correct.