Gratuity - Personal Work

naresh2682
R/Sir,
I have query related to Gratuity. If a person working in manuf. indus. in Punjab for continuous 5 yrs 3 months, then how many yrs.+ months gratuity he is eligible and also if he works for 5 yrs 9 months then how many yrs + months gratuity he is eligible for. Plz. guide me by your valuable knowledge.
Thnks,
korgaonkar k a
Dear Naresh1682,
Section 4(2) of POG Act says that gratuity is payable to the employee for every completed years of service or part thereof in excess of six months.
What does it means that less than 6 months shall be ignored and more than 6 months shall be considered as full year.
In your illustrations 5.3 years shall be considered as 5 years and 5.9 years as 6.
muzammil02061976
Dear Friends
Need one clarification. In one case an employee has completed 5 years of service but has put in less than 240 working days in the 3rd year (Let us say 160 days). Can 3rd year be excluded for the purpose of calculation or is he eligible for 5 years? Because as per sec 2A (2) ii of POG Act continuous service means for the said period of one year, 240 days has to be put in. Many thanks.
Best regards
M Khan
kumaracme
Our learnt member Mr. K.A. Korgaonkar, reply would be sufficient for your second question. more than six months after five years shall be regarded as one year for accounting.
240 days working is only for eligibility purpose for payment of POG Act.
umakanthan53
In the entire length of his/her qualifying service for gratuity, any employee would be entitled to gratuity only in respect of the years in which he/she has completed 240 days service as per sec.2-A of the P.G Act,1972. In the example cited by Mr.Khan, the incumbent is not entitled to gratuity for the 3rd year of service as his continuous service in that particular year happens to be 160 days only. Therefore, out of the total 5 years of service, excluding the third year, the employee is entitled to gratuity for the remaining 4 years only.
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