Gratuity - If staff completes 6 yrs 5 months of services. How to round off the total working years?

vinutha-nayak
If staff completes 6 yrs 5 months of services. How to round off the total working years while calculating gratuity
Bhartiya Akhil
Dear Vinutha-Nayak,
For 5 years & 5 months service, gratuity is payable for 5 years.
Please read the section 4(2) in which it is stated that for every completed year of service or part thereof in excess of six months, the employer shall pay gratuity to an employee.
What does it mean that if employee works for more than 6 month in a year, that year shall be considered as full year for payment of gratuity. Six months and less shall be ignored.
sumitk.saxena
Dear Vinutha-Nayak,
Akhil statment is self explanatory itself, For 6 years & 5 months service, gratuity is payable for 6 years. for 7 years completion of 240 working days is required .
sumit
Nagarkar Vinayak L
Dear colleague,
In the instant case, gratuity is payable for 6 years . As per the Act 6 months or more , after initeal 5 years of service, is treated as one year's service.In your case , 5 months' service will be disregarded.
Had the person completed 6 months or more, gratuity would have been payable for 7 years .
Regards,
Vinayak Nagarkar
HR and Employee Relations Consultant
Bhartiya Akhil
Dear Vinayak Nagarkar,
You are right. I made mistake in reading it as 5 years and 5 months and accordingly I responded 5 years. It is 6 years and 5 months so answer is 6 years. .................................................. ......................
james-arulraj
I have completed 5 years. Please help
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Nagarkar Vinayak L
Dear colleague,
You have stated that you have completed five years' of service. But the payslip attached shows your DOJas ०८/०१/२०१८. which is short of five years.
Gratuity is payable for five or more years of service and upon cessation of employment.
Apparently you are not yet eligible for gratuity
Regards
Vinayak Nagarkar
HR and Employee Relations Consultant
bandar-ki-aulad
Hi, I do not know whatever the hell is this dearness allowance and stuff. The approx simplest of calculations is half of last drawn wage x number of years. Now, I CHOSE to not be on payroll simply because I want to avoid this governmental red-tape especially over PF and other things. I'd rather be without these benefits rather than having to deal with the babugiri. So coming to the question, I am drawing a fixed X amount without any sub-categories like HRA or other hare-brained jargons and remained on auto-renewed contract for over 7 years in an organisation. I have been getting my pay-hikes, promotions as any other employee but just that my pay structure as remained without sub-categories. So I want to know whether the gratuity is the approx half-a-month's salary X number of years worked or will the employer try to give a workaround saying "Basic" of that X is only 20% of X and so it will be 1X/10 x number of years?
KK!HR
First of all, mind your language. We are a group of professionals interested to be of use to the fellow HR enthusiasts. Your professed loathsome to all officialese is belied by your sudden fondness for confirmation of gratuity formulation.
However, the formula is Gratuity = {(Basic + DA)/26} x 15 x number of completed years of service. For calculating the monthly wage (last drawn Basic + Dearness Allowance) is divided by 26 (the per day wage of the employee) and then multiplied by 15 x the number of years of service.
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