How Should Gratuity Be Calculated for 17.6 Years of Service? Seeking Advice on Rounding Off

To all respected HR professionals, I am resigning from my job on 30th November 2022. My joining date is 1st June 2005, making my service period 17.6 years. I would like to know how much gratuity I will receive, for 17 years or 18 years. Based on my understanding from various threads on gratuity in this forum, I believe I should be entitled to gratuity for 18 years. Please guide me and provide suggestions in case any disputes arise regarding the rounding off of the 6-month period.

Thank you.

Dear all, please spare a little time to guide me regarding gratuity. I am Kusum from Pune.

Thanks.

Gratuity Calculation as per the Payment of Gratuity Act 1972

As per Section 4(2) of the Payment of Gratuity Act 1972, gratuity is payable to an employee for every completed year of service or part thereof in excess of six months, at the rate of fifteen days' wages based on the rate of wages last drawn by the employee. The obvious explanation is that continuous service must be in excess of six months; even if it is by a day, the gratuity is payable treating it as a completed year. The query states it to be 17 years and six months, which cannot be treated as in excess of 17 years of service. Therefore, it appears to be only 17 years of continuous service.

Consideration of Notice Period in Continuous Service

It is mentioned that the employee is resigning on 30th November. The continuous service would extend until the notice period is over, and the employee is relieved of all duties and responsibilities. Hence, there could be scope for going beyond 17 years and six months of continuous service. Please check.

Dear Sir, This is in reference to my earlier question. My joining date was 1 June 2005, and my resignation date is 9 December 2022. The total service period is 17 years, 6 months, and 9 days. As per the gratuity act and the earlier discussion on this forum, this period should be considered as 18 years for gratuity calculation. However, my HR now says it's only 17 years. If possible, please provide any legal references or document copies so I can show her and help her understand.

Thank you.

There is a clear provision of law in Section 4(2) of the PG Act 1972, which reads as follows:

Payment of Gratuity
(1) Gratuity shall be payable to an employee ...
(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.

When there is a clear-cut provision of law, it does not require any judicial interpretation. As per the details shared, the entitlement is for 18 years of continuous service in this case.

Dear Sir, Thank you for your reply. Yesterday, I showed these provisions of law in Section 4(2) of the PG Act 1972 to HR. I am waiting for their reply on this matter. Thank you again.