Gratuity Calculation Confusion: Do Saturdays and Sundays Count in 240 Days?

Arpit8528
Hi there! I need help calculating gratuity eligibility and amount. I joined a company on 09 June 2014, and my last working day in that company was 16 February 2019. As we all know, for gratuity, we only need to complete 4 years and 240 days. I have completed 4 years, 8 months, and 8 days in that company. I need help with the following points:

1) How do I count 240 working days? Will it include Saturday and Sunday? In that office, all Saturdays and Sundays were off.

2) (Basic*15*completed years)/26. In the formula, should I put 4.8 or 5? In my case, I have completed 4 years, 8 months, and 8 days.

I request you all to support your answers by referring to some act or document so that I can provide them to the company.
ravi5554
Dear Friend,

If your basic is 8000, then your calculation will be: 8000 * 15 * 5 / 26. The payable amount is 23077.00.

Thank you.
umakanthan53
Dear Arpit,

It is not Sunday in particular, but the usual weekly holidays or weekly offs are excluded to arrive at the 26 days in the formula for the calculation of gratuity. You can refer to section 2-A(2)(a)(i), which specifically mentions that the number of days counted for continuous service in a year is 190 days for an establishment working for less than 6 days a week. This confirms the above proposition.

Therefore, in your case, it is sufficient that you worked in the fifth year of your service in the establishment for 190 days to be eligible to claim gratuity.
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