How We Calculate The Gratuity Of Employee? - XLS Download

I have been working with Ltd. Co. for the past 11 years. Our company does not provide gratuity benefits to any person who leaves our organization.

Please advise if I resign, will I be able to claim for gratuity or not.

Can anybody help me with whether the engineering college and medical college are covered under gratuity?

Can the employer decide not to pay gratuity to an employee under certain circumstances? If yes, then under what circumstances?

Employers are typically required to pay gratuity to employees as per labor laws or company policies. However, there may be specific situations where an employer could withhold or not pay gratuity. Such circumstances usually involve misconduct or violation of company rules by the employee. It's important for employers to clearly outline these conditions in their employment contracts or HR policies to avoid any confusion or disputes.

Dear,
the formula for calculating gratutity is
last drawn basic+DA*15/26*no.of years.
to eligible for grautity, 5years continous service required & if there is case of 4 years 10 months or 240 days can be cosnidered.
Maximum gratuity can be given upto Rs350000/-exempted .
m hereby attaching some doc regarding this for the reference.
Regards
Vipin8-)

Dear Vipin,

The formula for calculating gratuity is: last drawn basic + DA * 15/26 * number of years. To be eligible for gratuity, 5 years of continuous service are required. In case of 4 years and 10 months or 240 days, it can be considered. The maximum gratuity that can be given is up to Rs. 350,000/- and is exempted. I am hereby attaching some documents regarding this for reference.

Regarding the latest update, the ceiling has been raised to 10 lakh, and a bill has been passed. I believe a gazette has also been issued.

Regards,
Sampath S.
Joint General Secretary, TNSTC Staff Federation, Madurai
94420 36044

Hi Friends,

Let me clarify, as per Section 1.3(b) of the Payment of Gratuity Act, 1972, organizations having 10 or more employees are eligible to pay gratuity. Is there any provision that upon completion of 10 years of commercial operation, an organization is compelled to provide gratuity regardless of having 10 or fewer employees?

Dear Friends,

Under Section 4 of the Payment of Gratuity Act 1972, gratuity shall be payable to an employee upon the termination of his employment after he has rendered continuous service for not less than 5 years. Termination of employment may result from superannuation, retirement, resignation, death, or disablement due to accident/disease.

As held in the case of Darshan Engineering Works vs. the controlling authority, where an employee continues to work after superannuation, he will be entitled to gratuity for the entire period and not only up to his superannuation.

According to the explanation to Section 4(1), disablement means such disablement as incapacitates an employee from the work which he was capable of performing before the accident or disease resulting in such disablement. Under Section 4(4), if an employee continues in his current employment after disablement at reduced wages, the gratuity for the period up to his disablement is to be calculated at such wages as he was being paid before disablement. The gratuity for the period after disablement is to be calculated on such reduced wages.

Under provision 1 to Section 4(1), the requirement of continuous service of 5 years shall not be necessary if the termination of employment occurred due to death or disablement. In the case of death, the amount of gratuity shall be paid to the nominee. If no nomination was made, gratuity shall be paid to the heir. If the nominee or heir is a minor, then the amount of gratuity shall be submitted to the controlling authority. The minor can access this fund when he attains majority.

See Payment of Gratuity Act, Rules, Forms, Returns & All Other Information for a complete summary of the act.

Hi,

This is Rajeswari, working as an HR Executive for a private concern. I am enclosing the Gratuity calculator with this.

Hi All,

I have a question regarding gratuity. If an employee completes one year with the establishment and then, in the 13th month, is on leave and dies:
1. Is he eligible to receive gratuity?
2. If yes, in which judgment is this written?

Another question for everyone: If an establishment starts with 40 persons and after 4 years the company dissolves, leaving only 9 persons in the 5th year:
1. Is the company obligated to pay gratuity to all employees who completed 5 years?
2. If yes, in which judgment is this written?

Dear Rashmitha,

Please clarify, "after that in leave 13th month he died." I presume the employee died while being in service. Consequent to the deceased employee completing 1 year of service, he is eligible for gratuity.

Reduction in the strength of employees from 40 to 10: Once the act is made applicable, it continues to be applied even though there is a decrease in strength.

Please peruse relevant acts/rules thoroughly. You will find the answers to all your questions.