DEar Seniors, I want to know that is training period of continue service is add to count the gratuity year count. E.g Total service 5.2 ( 4.2 + 1 year training) is it right !!! Regards, Ashish
From United States, Santa Clara
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From United States, Santa Clara
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For the calculation of gratuity, we take into consideration the date of joining. so even the probation or training period is included Regards Neha
From India, Chandigarh
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22From India, Chandigarh
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dear asish for the gratuity calucation, Training Period not comes in gratuity calculation. we calculate probation period onwards. from surya
From India, Visakhapatnam
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From India, Visakhapatnam
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Gratuity calculation is based on the joining date up to the completion of 1 year. This is a general rule. You can even ask other HR professionals in other countries. In cases where an employee undergoes training on or before the completion of their 1 year of service, it is included. The computation of such varies as per the respective laws of each country (i.e., 7 days/year; 14 days/year; 21 days/year).
Hope this helps.
Regards,
Genn
From United Arab Emirates, Abu Dhabi
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Hope this helps.
Regards,
Genn
From United Arab Emirates, Abu Dhabi
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I agree with Genn. There should be a single payroll register; otherwise, it'll be difficult to track as and when the company expands.
In my company, gratuity is calculated from the date of joining (our employees are called trainees for the first 6 months). PF/ESIC and other statutory benefits are mandatory from day one of their joining the company. However, this can change according to the policy within the company. If the trainee is not considered a permanent workman, they may be placed on a temporary payroll. But if they are on the regular payroll, it is better from a legal standpoint to consider all the benefits from day one of their employment.
Regards,
From India, Mumbai
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In my company, gratuity is calculated from the date of joining (our employees are called trainees for the first 6 months). PF/ESIC and other statutory benefits are mandatory from day one of their joining the company. However, this can change according to the policy within the company. If the trainee is not considered a permanent workman, they may be placed on a temporary payroll. But if they are on the regular payroll, it is better from a legal standpoint to consider all the benefits from day one of their employment.
Regards,
From India, Mumbai
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Please clerify that what you have paid during training period stipned or salary, than after the clerification can be provided. sumit kumar saxena, 9899669071, 0120-4131277
From India, Ghaziabad
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From India, Ghaziabad
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Understanding Gratuity Eligibility and Continuous Service
According to the Payment of Gratuity Act, after 5 years of continuous service, an employee will be eligible to receive gratuity. The training period is considered part of continuous service, making it an important aspect to consider.
If a trainee is terminated or issued a completion letter after one year of tenure and then reemployed as a new employee with a break in service, this will not be counted as continuous service. Please review this scenario accordingly.
For an employee who works without any breaks in service from the training date, they will be eligible for gratuity after 5 years. The formula to calculate gratuity is Basic + D.A / 26 * 15 * Number of years of service (in this case, 5 years).
Regards,
Ravindra Chaubal
General Manager - Business Development
Paradise HR Solutions
From India, Nasik
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According to the Payment of Gratuity Act, after 5 years of continuous service, an employee will be eligible to receive gratuity. The training period is considered part of continuous service, making it an important aspect to consider.
If a trainee is terminated or issued a completion letter after one year of tenure and then reemployed as a new employee with a break in service, this will not be counted as continuous service. Please review this scenario accordingly.
For an employee who works without any breaks in service from the training date, they will be eligible for gratuity after 5 years. The formula to calculate gratuity is Basic + D.A / 26 * 15 * Number of years of service (in this case, 5 years).
Regards,
Ravindra Chaubal
General Manager - Business Development
Paradise HR Solutions
From India, Nasik
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Dear Ashish and all responders,
As Mr. Madan Mohan Praj says, it is such a horrible state of the HR function. After seeing the questions and responses, I too felt so. Please find below my clear inputs on Gratuity. Hope this will put an end to basic questions on Gratuity.
Gratuity Eligibility and Calculation
1. Gratuity is payable on completion of 5 years of service.
2. Service counts from day one when the person is taken on regular employment, which includes the probationary period (training should not be confused for probation - Training is an engagement by a company where the person is given an offer letter as a Trainee, which will be for a fixed period or may be extended after completion of that fixed period).
3. The Gratuity formula is: basic + DA x number of years of service x 15 / 26, where 15 represents the 15 days of basic + DA payable for every completed year of service.
4. While calculating gratuity, service of 6 months and more should be treated as one year.
5. Payment of Gratuity is done within one month after leaving the company in case of resignations, VRS, etc., and in case of retirement, it is a normal practice in organizations to pay it on the last day when the person retires.
6. Gratuity cannot be withheld unless there is any damage to the property or such reasons that the management should be able to convince the Gratuity Authority in case it becomes an issue.
7. Late payments will attract 15% (latest amendments, if any, to be checked) interest per annum, and the eligible person will be at liberty to take it to the Gratuity authority if managements do not comply.
Regards,
K. Ramachandra
Manager-Admin & HR
Tokai Rubber Auto-Parts - Bangalore
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As Mr. Madan Mohan Praj says, it is such a horrible state of the HR function. After seeing the questions and responses, I too felt so. Please find below my clear inputs on Gratuity. Hope this will put an end to basic questions on Gratuity.
Gratuity Eligibility and Calculation
1. Gratuity is payable on completion of 5 years of service.
2. Service counts from day one when the person is taken on regular employment, which includes the probationary period (training should not be confused for probation - Training is an engagement by a company where the person is given an offer letter as a Trainee, which will be for a fixed period or may be extended after completion of that fixed period).
3. The Gratuity formula is: basic + DA x number of years of service x 15 / 26, where 15 represents the 15 days of basic + DA payable for every completed year of service.
4. While calculating gratuity, service of 6 months and more should be treated as one year.
5. Payment of Gratuity is done within one month after leaving the company in case of resignations, VRS, etc., and in case of retirement, it is a normal practice in organizations to pay it on the last day when the person retires.
6. Gratuity cannot be withheld unless there is any damage to the property or such reasons that the management should be able to convince the Gratuity Authority in case it becomes an issue.
7. Late payments will attract 15% (latest amendments, if any, to be checked) interest per annum, and the eligible person will be at liberty to take it to the Gratuity authority if managements do not comply.
Regards,
K. Ramachandra
Manager-Admin & HR
Tokai Rubber Auto-Parts - Bangalore
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Gratuity-Contin uous Service-countin g broken period with same employer-Madras HC Judgment.docx