Navigating Gratuity for Permanent Disability: Am I Eligible and What Steps Should I Take?

Dear Sir, I worked in a Pvt Ltd company. My basic salary was Rs. 17,000 per month, and my PF contribution was Rs. 2,040 per month. I had only 8 months of service in this organization. Unfortunately, I met with an accident on duty and was permanently disabled. I filed a case for employee compensation against my employer, which has recently been closed, and I have also received the awarded amount.

Until now, I wasn't aware of the gratuity rule. Upon researching online, I discovered that gratuity is eligible for permanent disability as well. Could you please advise me on the steps I should take regarding this? Is gratuity really applicable in my case, and if so, how much could I receive? Your assistance on this matter would be greatly appreciated, sir.

Thank you

Dear Mr. Ramakrishna,

Whatever happened to you is very sad and can't be explained in words.

Payment of Gratuity as per POG Act, 1972

Gratuity shall be payable to an employee on the termination of his employment after he has rendered continuous service for not less than five years: (a) on his superannuation, (b) on his retirement or resignation, or (c) on his death or disablement due to accident or disease. Provided that the completion of continuous service of five years shall not be necessary where the termination of the employment of any employee is due to death or disablement.

For the purposes of this section, disablement means such disablement as incapacitates an employee for the work which he was capable of performing before the accident or disease resulting in such disablement.

In the case of a monthly-rated employee, the fifteen days' wages shall be calculated by dividing the monthly rate of wages last drawn by him by twenty-six and multiplying the quotient by fifteen.

On the basis of the above wording, you are entitled to 1 year of Gratuity (8 months rounded off to one year). According to my calculations, it comes to Rs. 9808.00 = (17000/26*15*1).

Please check with your establishment if they have taken insurance under the Act. You may get a better gratuity amount.

Since you have already received compensation, I believe a pension from ESI is not applicable to you. Otherwise, ESI Pension is applicable in the case of death or disability due to or during duty hours.

Seniors and experts, please suggest more inputs so that individuals can get better gratuity compensation.

Gratuity Entitlement and Application Process

You are entitled to gratuity and interest thereon beyond one month of termination of service. You can send an application to the employer claiming the gratuity amount and interest thereon. In case they are not responding favorably, you can approach the Controlling Authority under the Payment of Gratuity Act, 1972 (the Labor Officer of the local area).