In calculation of Gratuity need to consider round service or Not?

avinashs@ohsunghq.co.kr
Dear Experts,
How to calculate gratuity in the case of employee service is 5 years & 6month, i.e need to consider round service or not for calculation. Please give the Law reference with clause number for if calculation in round service
Regards,
Avinash Sankpal
KK!HR
As per Section 4 (2) of Payment of Gratuity Act 1972, Gratuity is payable for completed years of continuous service and continuous service in excess of six months is treated as a completed year. Section 4 (2) is extracted below:
(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:
avinashs@ohsunghq.co.kr
Thank you Expert for your kind reply
As per the above section 4(2) if employee service is 5 years & 6 months its to be consider as a 6 years for gratuity calculation
And in the other hand if employee service is 5 years & 5 Months that time we have to calculate on 5 years only, so is it correct or wrong
please revert for clear doubt with law reference
KK!HR
It has to be in excess of six months, that is the import of Section 4(2). Just six months would not add up to one additional year. So obviously 5years and 5 months would qualify for only 5 years continuous service as per the Act.
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