HOW MANY YEARS SERVICE REQUIRED TO GET "GRATUITY" AND WHEN IT WILL BE APPLIED. WHAT THE METHOD TO CALCULATE THE GRATUITY.
Shrikant (Sr Consultant) 14 June 2012
Employee should have put in 5 or more years of service, with minimum 240 days of service in each year to be able to be entitled to receive gratuity. If employee dies while in service after putting in 1year + service, his heir(s) can claim gratuity. For calculation of length of service, period in excess of 6 months is to be treated as 1 year.
The method of calculation of gratuity for employee paid monthly wages / salary is:
Basic + DA devided by 26 X Completed years of service X 15 days of last drawn wages / salary
ADVOCATE Prem Joshi (Advocate/ Legal Consultant) 14 June 2012
(1) Gratuity shall be payable to an employee on the termination of his employment after he has rendered continuous service for not less than five years, -
(a) on his superannuation, or
(b) on his retirement or resignation, or
(c) on his death or disablement due to accident or disease: