Is notice period included in calculating 5 years eligibility period for gratuity?

Hi, An employee is eligible for Gratuity even if he has completed 4 years and 8 months (240 days) in the organisation but there should not be any leave in between this tenure which will be leave without pay(LWP). Regards, Kalpana

Dear , Gratuity payble depends on completion of continous working for 5 years i.e. it a gesture from the employer to pay amount as calulated for long service employee has render the services to the employer. The last date will be last date of your working with the company, one of the high court in india has given the sentence that for the fifth year can be counted as complete one year even if employee completes 240 days of services with the company. While giving the resignation one has to check wether by any means wether he/she feels that company by any reason does not want to pay the same and they can relive you early before the exact date is coming for counting the 5 years.

Hi M Peer i am nishat wanted to know the details of Gratuity calculation thts No of years of service{[last salary drawn/26]*15}.... so what is 15 and 26 is stand for ...? kindly reply urgent Thanks and regards Nishat:?:

U have asked to peer, let me answer too, 26 is a standard days in a month taken in calculating the gratuity, which is 26 days working and 4 weekly off. 15 is the number as in Gratuity you have to pay 15 day basic salary for the number of years u have worked in, the basic salary should be last drwan basic eg BASIC Rs 10000.00 years 6 hence 10000/26*15*6. Basic is divided by 26 to arrive on one day basic and for arriving 15 day calulation it is multiplied by 15 and to arrive on full amount agian mutiplied by no of years. Hope the same is clear, though peer will also be giving his points. regards

I agree with Mr. J S Mallik. It is advisable to put paper after completing 5 year of services. The employer has full right to accept your resignation on any day during the notice period. They may even accept the your resignation on the same itself. In that case since you have not completed 5 years of service you will not be eligible for the payment of gratuity. The calculation of 240 days is only for the purpose of calculating the grauity amount but for applicability 5 years of service should have been completed. Regards UMESH KAPOOR

Hi Anujcpa, It is always better to resigned after completing 5 Years of service. Querry raised by you is interesting. If you resigned one month before you completes 5 years of service, there is a chance that employeer might relieve you immediately. Then in this case 5 Years of service period does not completes. For gratuity eligibility, individual has to complete 5 Years of service. 4 Years & 240 Days is not applicable. If employee completes 5 Years & 240 days, gratuity is calculated as 6 years. Regards, Nimish Joshi 9969526325

Hi All Gratuity Eligibility :- As per act employee will be eligible after 05 years of continous services in same organisation. Notice Period : It means you are providing time to your existing employer to seek your replacement in order to avoid any interruption to smooth work, this notice period may vary as per clause in your appointment letter. If you are working in notice period these days will be considered in your service period. Simply if you have given notice period but including your notice period you have completed five years of services from your date of joining, certainly you will be eligible for gratuity. Thanx & Regards, Shiv Kumar

Dear Aparna, Gratuity is not a part of salary. It is an amount that the employer should pay graciously to an employee while he leaves after serving him (the employer) for long years. In order to give clarity to the term ' long service' the Kerala Payment of Gratuity Act (Kerala state was the first to come out with an enactment for payment of gratuity followed by West Bengal and it was only after these two state Acts that a Central Act was enacted in 1972) defined 5 years continuous service which was accepted by the Central Act. It is very simple that gratuity is a reward for the ' meritorious service' though it can be withheld if the employee is found guilty of an offence in the latter years of service. There are establsihments which show gratuity as part of salary (CTC) so that the quantum of package offered could be very high and then deduct the gratuity from the sum offered to arrive at actual pay. This practice may lead to serious problems. If gratuity is taken as part of remuneration and every month the pay is given after deduction of gratuity, the employer will be forced to refund to the employee the amount so deducted when the employee leaves even before serving for the stipulated period of 5 years. This is because, deduction shall be treated just like contribution of employee towards a fund like provident fund. Therefore, to be of safer side, employer shall ensure that gratuity is not shown as monthly deduction from salary. His defend by saying that he has not given a salary slip but has given only "CTC Slip" will not be accepted because, there is nowhere in any labour Act which defines the term 'CTC"' but at the same time an employer is legally bound to give 'salary slip' and not any statement showing what all costs are incurred by him by employing an employee! Regarding 240 days of working in the fifth year, though there are court verdicts, there has not taken place any amendment in the basic Act and, therefore, the circumstances which led to the verdict in the cited case should be verified and matched with the present situation before a decision is taken. Regards, Madhu.T.K

Dear Madhu TK, I have some doubts on Income tax (Form 16) . I feel u are the best person to solve my query. Plz let me know how to contact you to clear my query. I have already posted my query on citehr on 13-Jan-09 with the subject "INCOME TAX" but I haven't received any replies.

Hi Everybody,Yes, you will be ewligible for gratuity even you put your papers on 31st Jan. You notice period will be calculated in it, even if the employer has accepted and agreed to relieve you from the job. But make sure that during notice period your term of five should have been completed.Secondly, in case of a death after one year of continuos service, person is eligible for gratuity.ThanksAnsariMobile : 09967594946