Dear All,
Please let us know, the calculation of Gratuity eligibility i.e. 5 years is from the date of joining or from the date of confirmation. Because one employee has joined and was in probation for six months and then he was confirmed thereafter. Now he has completed five years from the date of joining and is still yet to complete five years from the date of confirmation. Now he has resigned and is claiming his Gratuity payable. Please suggest what the law/rules state for the eligibility criteria.
Expecting your valuable suggestions.
Regards,
Gopal Kumar
From India, Mumbai
Acknowledge(0)
Amend(0)
Please let us know, the calculation of Gratuity eligibility i.e. 5 years is from the date of joining or from the date of confirmation. Because one employee has joined and was in probation for six months and then he was confirmed thereafter. Now he has completed five years from the date of joining and is still yet to complete five years from the date of confirmation. Now he has resigned and is claiming his Gratuity payable. Please suggest what the law/rules state for the eligibility criteria.
Expecting your valuable suggestions.
Regards,
Gopal Kumar
From India, Mumbai
Acknowledge(0)Amend(0)
There is a Gratuity Act of 1972, which states that 5 years of service are essential to be eligible for gratuity. Below is the formula for calculating gratuity:
Gratuity Calculation Formula
Basic + DA X 15 X Number of Years of Service / 26
The maximum limit for gratuity payment is Rs. 100,000.
From India, Pune
Acknowledge(0)Amend(0)
1Gratuity Calculation Formula
Basic + DA X 15 X Number of Years of Service / 26
The maximum limit for gratuity payment is Rs. 100,000.
From India, Pune
Acknowledge(0)Amend(0)CiteHR is an AI-augmented HR knowledge and collaboration platform, enabling HR professionals to solve real-world challenges, validate decisions, and stay ahead through collective intelligence and machine-enhanced guidance. Join Our Platform.
Less than 5 years service - Eligibility for payment of gratuity.pdf
Gratuity calculation.doc