Gratuity Confusion After 12 Years in Private Sector: How Can I Get Clarity?

I have been working in a private company for 12 years and 6 months. However, my gratuity amount of only 36,000 was transferred to my account without a proper calculation procedure. When I inquired with my higher authorities, they did not provide me with a satisfactory answer. Kindly assist me.

Thank you.

From the calculation, it appears that your last basic pay and DA added together are reckoned as Rs. 5200/-, treating your service to be 12 years. In case the above figures are not correct, please provide details of your last pay drawn (basic pay & DA) and the exact length of continuous service before we can offer any opinion.

Hi, Sir. My last salary was 21,000 for a total of 12 years and 6 months. My gratuity amount is only 36,000. I have not received a proper explanation regarding the calculation details that led to this amount. Can someone clarify whether this amount is correct or not?

Gratuity Calculation Discrepancy

The calculation appears to be incorrect. As per the information given by you, the gratuity should be Rs. 1,57,500 based on a salary of Rs. 21,000 per month and 13 years of continuous service. Please confirm the breakdown of the salary.

Approaching the Controlling Authority

You have the option of approaching the Controlling Authority under the Payment of Gratuity Act, i.e., the Labour Officer of the local area, and submit a claim for the unpaid amount.

₹12,000 is your gross salary or your basic salary?

Gratuity is computed on the last drawn basic salary.

Payment of Gratuity

Payment of gratuity depends on the number of years of regular service and your basic salary plus DA, if any. You can calculate it yourself using a very simple formula.

Gratuity Calculation Formula

Gratuity = (Last drawn Basic + D.A) / 26 x 15 x completed years of service.

Please double-check the calculation and let me know if you notice any discrepancies.