Hi, I have a query relating to gratuity entitlement. If a resigned employee has worked for 4 years and 10 months, is he eligible for Gratuity Payment or not?
Eligibility for Gratuity Payment
Can the number of months worked (i.e., if more than 6 months) be considered as 1 year before the completion of 5 years, or can it be considered after the completion of 5 years ONLY?
Please help.
Regards, Sweta
From India, Rajahmundry
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Eligibility for Gratuity Payment
Can the number of months worked (i.e., if more than 6 months) be considered as 1 year before the completion of 5 years, or can it be considered after the completion of 5 years ONLY?
Please help.
Regards, Sweta
From India, Rajahmundry
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Dear sweta, i dont think so you can consider 4 yrs and 10 months for gratuity. As per law its 5 yrs. Regards, Jyoti Moraes
From India, Thane
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1From India, Thane
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Gratuity Entitlement Clarification
When an employee completes 4 years and 10 months, they are not entitled to gratuity. However, when an employee works for 5 years and 6 months or more, it will be considered as 6 years for gratuity calculation. The rounding up and down formula is considered only when an employee completes 5 or more years of service.
From India, Gurgaon
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When an employee completes 4 years and 10 months, they are not entitled to gratuity. However, when an employee works for 5 years and 6 months or more, it will be considered as 6 years for gratuity calculation. The rounding up and down formula is considered only when an employee completes 5 or more years of service.
From India, Gurgaon
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Hi, I have a query relating to gratuity entitlement. If I have been working in a private company for the last 12 years, my gratuity amount is $37,000. My HR manager and accounts manager have informed me that this is the final amount. Can anyone help me, please?
Regards,
Durai
From India, Patna
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Regards,
Durai
From India, Patna
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Dear Sweta,
Yours is an oft-repeated question in this forum, and had you made some efforts to see the previous discussions, you would understand that this is a settled question of law. However, some employers still stick to their otherwise wrong stand.
Eligibility for Gratuity Payment
As per the ratio decidendi of the High Court of Madras in Mettur Beardsel Ltd. v Regional Labor Commissioner (Central) [1998 LLR 1072], if an employee completes 240 days of service in the fifth year, he is eligible to claim gratuity under the Payment of Gratuity Act, 1972, as per the interpretation of the definition of the term "continuous service" as defined under section 2-A of the Act.
Understanding Section 2-A of the Act
I would like to request you to carefully go through the provisions of section 2-A of the Act. According to clause (a)(i) and (ii) of subsection (2) of section 2-A, an employee is eligible to claim gratuity if he has completed 190 days of continuous service in the fifth year if the establishment works less than 6 days a week, and 240 days in any other case.
Thank you.
From India, Salem
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Yours is an oft-repeated question in this forum, and had you made some efforts to see the previous discussions, you would understand that this is a settled question of law. However, some employers still stick to their otherwise wrong stand.
Eligibility for Gratuity Payment
As per the ratio decidendi of the High Court of Madras in Mettur Beardsel Ltd. v Regional Labor Commissioner (Central) [1998 LLR 1072], if an employee completes 240 days of service in the fifth year, he is eligible to claim gratuity under the Payment of Gratuity Act, 1972, as per the interpretation of the definition of the term "continuous service" as defined under section 2-A of the Act.
Understanding Section 2-A of the Act
I would like to request you to carefully go through the provisions of section 2-A of the Act. According to clause (a)(i) and (ii) of subsection (2) of section 2-A, an employee is eligible to claim gratuity if he has completed 190 days of continuous service in the fifth year if the establishment works less than 6 days a week, and 240 days in any other case.
Thank you.
From India, Salem
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Dear Sweta,
According to Pakistan's gratuity law, the rate of gratuity is "thirty (30) days' wages for every completed year of service or any period in excess of six months." Any employment period exceeding six months will be considered as one year. Originally, gratuity was set at 15 days' wages for every completed year of service. In 1973, the rate was revised to 20 days' wages. In 1994, it was further revised to 30 days' wages for every completed year of service or any period in excess of six months. After the 18th Constitutional Amendment of 2010, provinces have enacted necessary legislation providing for gratuity on termination of employment. Punjab and the Islamabad Capital Territory provide 30 days' wages for each year of service. Khyber Pakhtunkhwa and Sindh provide one month's wages for each year of service. Balochistan requires two months' wages as gratuity for each year of service.
Thanking you,
Qasim Raza
From Pakistan, Lahore
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According to Pakistan's gratuity law, the rate of gratuity is "thirty (30) days' wages for every completed year of service or any period in excess of six months." Any employment period exceeding six months will be considered as one year. Originally, gratuity was set at 15 days' wages for every completed year of service. In 1973, the rate was revised to 20 days' wages. In 1994, it was further revised to 30 days' wages for every completed year of service or any period in excess of six months. After the 18th Constitutional Amendment of 2010, provinces have enacted necessary legislation providing for gratuity on termination of employment. Punjab and the Islamabad Capital Territory provide 30 days' wages for each year of service. Khyber Pakhtunkhwa and Sindh provide one month's wages for each year of service. Balochistan requires two months' wages as gratuity for each year of service.
Thanking you,
Qasim Raza
From Pakistan, Lahore
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