Gratuity After 5 Years and 2 Months of Service: Will It Be Included in My Salary?

After completion of 5 years of service plus an additional more than 2 months, will I receive my gratuity in my consolidated salary? My consolidated salary is Rs. 11,525 per month.

Please check out the formula for gratuity:

Basic + DA (last drawn salary is taken into account) * number of years of completed service * 15/26.

Dear friend,

Whenever the salary or wages are a consolidated amount, the entire sum should be taken into account for the calculation of gratuity under the Payment of Gratuity Act, 1972. You are entitled to gratuity for 5 years at your entire consolidated salary drawn in the last month of your service.

Further to the advice received from the learned members, please be informed that the amount will be for 5 years as of now unless you are still in employment for more than 6 months in the calendar year. In that case, it will be considered as one year. Essentially, you need to meet the first criterion of 5 years to be eligible for gratuity. Any portion of the year that exceeds 6 months in the last year of service will be counted as one year. For example, if you work for 5 years and 6+ months in the 6th year, it will be considered as 6 years of gratuity.

Thanks and Regards

You are entitled to payment of gratuity, but the calculation should be based on Basic+DA instead of gross salary.

Thanks & Regards,

From,
Sumit Kumar Saxena

Yes, you are eligible for gratuity, provided you should quit your job. It's a terminal benefit and payable only when an employee leaves the service after completing continuous 5 years' service with the same employer. It's not payable every month even after completion of 5 years.