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Deepak   29 November 2017

Gratuity eligibility

Hello All, I have been working with one of the MNC in Mumbai since 2nd May 2013. We have 5 days working in a week & I have office based job in finance department. Could you please advice the date on which I will be eligible for Gratuity? What will be the minimum eligible date of gratuity if I do not continue with company till 01st May 2018 to complete 5 years? Your valuable reply will be appreciated. Thanks!


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 14 Replies

Kumar Doab (FIN)     29 November 2017

The employee should be aware of basics and read to gt updated and also consult elders of the family, competent and experienced well wishers, seasoned employees/trade union leaders to remain properly informed.

 

You may go thru: Payment of Gratuity Act,1972;S; 2,2A, 4,7

https://www.labour.nic.in/sites/default/files/ThePaymentofGratuityAct1972.pdf

1 Like

Kumar Doab (FIN)     29 November 2017

 

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

(Basic+DA) is as per last drawn salary.

NO. of years; If employee has worked for more than 5 calendar years then for last year take period

> 6 months=1Y

< 6 months=0Y 

 

1 Like

Kumar Doab (FIN)     29 November 2017

In your case as pr details posted by you, you might be eligible if you have worked for 4Y190D from DOJ to LWD…………….and 190D in each year…

Understand date of reference and count carefully.

It is easy.

 

GO thru Sec;2A carefully.

1 Like

Manish Ojha   30 November 2017

Hi All,

I joined an organisation on 07.09.2007. For the purpose of gratuity eligibility for 11th year, which date will be taken into consideration---07/03 or 08//03 or any other day. We have a 5 day week

 

Kumar Doab (FIN)     30 November 2017

Count each year from DOJ............

If in 11th year employee has worked in excess of 6 months then employer is to pay Gratuity for 11 years............

If not employer shall pay for 10years..

 

Deepak   07 December 2017

Dear Mr. Kumar,

Thank you so much for very valuable reply!

The following calculation done for my gratuity eligibility:

2nd May 2013 to 1st May 2014 = 1st Year

2nd May 2014 to 1st May 2015 = 2nd Year

2nd May 2015 to 1st May 2016 = 3rd Year

2nd May 2016 to 1st May 2017 = 4th Year

2nd May 2017 to 31st Dec 2017 = 243 Days

By 31st Dec 2017 I would have completed 4 Years 243 days. 

However as per clause I should I have completed 190 actual working days incase 5 working days in a week or 240 days actual working days in other case. So these 190 or 240 days including saturday & sunday or without saturday & sunday? 23 days Privilege leave (Paid Leaves) taken by me included in 243 days so does it affect eligibility? We have 5 days working in a week.

Thanks & regards,

Deepak

 

Deepak   18 December 2017

Dear All,

Could you please reply on my query?

Thanks & regards,

Deepak.

 

Kumar Doab (FIN)     18 December 2017

It is good that you have made an effort.

The Act speaks of date of reference and preceding years in sections already posted.

The off days are counted.

Hope your leaves if any are duly approved.

Kumar Doab (FIN)     18 December 2017

Write to employer that ‘Notice of Determination of Gratuity’, and payment and requisite forms in any has not been supplied and may be supplied immediately by letter thru Redg. post.

 

Kumar Doab (FIN)     18 December 2017

You may also go thru;

THE PAYMENT OF GRATUITY (CENTRAL) RULES, 1972-1

7……Provided that where the date of superannuation or retirement of an employee is known, the employee may apply to the employer before thirty days of the date of superannuation or retirement.

https://labour.gov.in/sites/default/files/ThePaymentofGratuityRules.pdf

Kumar Doab (FIN)     18 December 2017

Deepak   19 December 2017

Thank you so much sir for your expert advice! Regards, Deepak.

Deepak   19 December 2017

Thank you so much sir for your expert advice! Regards, Deepak.

Kumar Doab (FIN)     19 December 2017

You are welcome.


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