Understanding Gratuity Eligibility and Payment: Insights from the Payment of Gratuity Act - CiteHR

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Hi, my total work experience is 4 years and 11 months. I will be completing my 5 years on January 26th, 2015. I have put in my resignation on December 8th, and I am currently in the notice period. January 29, 2015, is my last working day. Will I be eligible for the gratuity amount? I joined this organization on February 26th, 2010. Awaiting your reply... please suggest me.

Thanks & Regards,
Thalir

From India, Bangalore
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Yes, Gratuity Act entitles for gratuity Amount after Completing 4 Years and 6 Months (Please Refer Gratuity Act)
From India
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Thank you so much, Deepak. I need one more help. Do you have any idea how to calculate the gratuity amount? Right now, when I saw my appraisal paper, they have written 700 per month for my gratuity. Can you tell me what is the exact calculation of the gratuity amount after completing 5 years? How will HR calculate the gratuity amount? Awaiting your reply, Deepak.

Thanks & Regards,
Thalir

From India, Bangalore
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Resignation and Gratuity Eligibility

The effective date of resignation tendered by you in the notice of resignation cannot be preponed or postponed by the employer. Thus, you will be completing a clear 5 years.

[Subheadline]Gratuity Calculation Formula[/Subheadline]

{(Basic+DA)/26*15*No. of years in service}

Here, Basic+DA is as per the last drawn wages.

[Subheadline]Employer's Benefits[/Subheadline]

The employer can provide superior benefits, and the Act allows it.

[Subheadline]Eligibility Misconception[/Subheadline]

It is wrong that an employee who has served for 4.6 years is eligible.

Regards.

From India, Chandigarh
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Gratuity Eligibility Clarification

Please note, The Payment of Gratuity Act has not been amended to change the eligibility criteria for any employee completing 4 years and 240 days of continuous service. The 240 days are to be considered as one full year for gratuity payments starting from the sixth year onwards.

It is up to the individual company or organization to consider this as a special case or as part of their own company policy to provide gratuity to employees who complete 4 years and 240 days of continuous service.

Regards,
B. Sundararaman
[Email Removed For Privacy Reasons]
HR, IR Consultant

PS: It's important to note that the old Madras High Court judgment is applicable only to that specific company and does not constitute a Supreme Court judgment to be considered as an amendment in the Payment of Gratuity Act.

From India, Madras
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It is confirmed that any employee who serves in employment for more than 4.5 years shall not be eligible as per PGA. The condition of 6 months 1 day and above being counted as 1 year is in case the employee has served for more than 5 years...
From India, Chandigarh
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"During this period of a minimum of 5 years of service, if in any calendar year of 12 months an employee, for reasons given, has not completed 365 days of work but has completed 240 days (or as applicable), then it will be considered that the employee has completed continuous service for that year. Therefore, if an employee joins on 01/01/2000, he completes 5 years on 31/12/2004. However, if the employee resigned on 31/08/2004, even though he would have worked more than 240 days in 2004, it will not be considered as a full year, and thus, not completing 5 years. Consequently, he would not be eligible for gratuity."

Eligibility for Gratuity as per Madras High Court Order

As per the Madras High Court order, in order to be eligible for gratuity, an employee should have at least 4.8 years of continuous service with the employer.

Service Consideration in a Calendar Year

An employee is considered in service in a calendar year provided he has worked for:

- 190 days in case the employee is employed below the ground (4.6 years) - For mining staff {working below the ground}
- 240 days in any other case (above the ground - 4.8 years) - For office/field staff

Thank you.

From India, Mumbai
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I am working in a private company and have been working since February 2010. I resigned on January 19. I have completed 4.11 years in this company, and now I am in the notice period. I will complete 5 years on the 14th of February. Am I eligible for gratuity, as the company management is saying the notice period will not be counted for 5 years? Please guide.

Regards,
Neha More

From India, Pune
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You can submit Form I-30 days before the LWD. Submit it under proper acknowledgment. Let the company state whatsoever it wants in writing. Escalate to the appointing authority, MD. The notice period is counted in service. You may count from DOJ-LWD.
From India, Chandigarh
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Dear friend The condition of 6 months and above being counted as 1 year is in case employee has served for more than 5 Years, i.e. after completion of exact 05 years from the date of joining.
From India, Asansol
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Dear All, My company has issued appointment letter with Gratuity amount included in CTC and reflecting the amounts, Can I calim while leaving the company before 5 years ?? Pl. guide. Rgds, Prakash
From India, Vadodara
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Hi Arunoday, can you please elaborate on how you have concluded that someone will be eligible for gratuity (excluding seasonal industry or underground mines) after completing 4.5 years? This information would greatly assist me in reshaping my understanding of the Gratuity Act.

Regards,
MG

From India, Thana
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Hello Sir,

I am working in a private limited firm and I joined the company on 11th November 2013. I will be leaving the company on 31st August 2018. Am I eligible for gratuity considering there are only 6 days remaining for work and no instances of leave without pay or loss of pay during my tenure?

Please confirm.

Regards,
Saurabh Kumar

From India, Kottagudem
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