Gratuity Calculation Confusion: Does 6 Years, 6 Months, and 12 Days Round Up to 7 Years?

I have completed 6 years, 6 months, and 12 days in a company. So, what period will be considered for gratuity calculation? Will it be considered rounding up to 7 years, or will it be considered 6.5 years? Please help me with this. Also, share the formula for calculation.

Hi, yes, it will be rounding up for 7 years. Please find the Gratuity Formula for your reference. Number of Years * 26/15 * Last Withdrawn Basic Salary.

Yes, your gratuity will be considered for 7 years after rounding it off.

Since it is six years and more than six months, the total service is considered as seven years.

Dear Aniket,

For more clarity regarding the basis of rounding off of service for the calculation of gratuity, you can refer to Section 4(2) of the Payment of Gratuity Act, which envisages that "4(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." In your case, the part in excess of six months is 6 months and 12 days, and hence it would be treated as a completed year.

Regards,

Hi, it will be paid as 7 years.

It will be considered as the completion of 7 years because completion of more than 6 months will be treated as one, and a period of less than 6 months will be ignored.