Gratuity Calculation Confusion: Why Does My Payment Not Match My Expected Amount?

I am writing to inquire about the gratuity calculation for my exit on January 31, 2025. My joining date was July 9, 2018. I recently received ₹103,355 as my gratuity payment. However, based on my understanding of the Payment of Gratuity Act, my total service period of 6 years and 7 months should be considered as 7 years for gratuity calculation purposes, as it includes more than six months beyond the completed six years.

Based on a basic salary of ₹29,858 and a tenure of 7 years, the gratuity amount should be approximately ₹120,580. Could you please clarify how my gratuity was calculated and explain the discrepancy between the amount I received and the amount I believe I am entitled to based on my tenure?

Your previous employer has considered only 6 years of total service.

You are entitled to gratuity, calculated for 7 years. Please let me know if you need any further assistance.

As per the provisions of the Payment of Gratuity Act, 1971, you are entitled to a gratuity of Rs. 1,20,580/- (29858 x 26/15 x 7).

Regards, N. Lokandha Babu
Sr. Manager - HR
NRI Academy of Sciences