GRATUITY TOTAL YEARS CONSIDERATION AND RECIEVEABLE AMOUNT

If I have completed 6 years, 6 months, and 12 days in a company, and my last drawn basic & DA is 14500 INR, then how many years will be considered for calculation as per the rule and what amount will I receive as gratuity.

Cite HR, help me with this doubt because our company's HR is saying that it will not be considered as 7 years of service as the rule is still not implemented.

Considering your basic salary as Rs. 14,500, you will be paid Rs. 55,212.

Sir, which period will be considered: will it be rounded off to 7 years or 6 years?

Total service is 6 years, 6 months, and 12 days. Hence, you are eligible for gratuity for 7 years. Therefore, the gratuity payable to you is Rs. 58,558/- (14500/26*15*7=58,558/-).

N. LOKANADHA BABU
Sr. Manager-HR

Is there any provision under the Payment of Gratuity Act that gratuity should be computed on basic wages and dearness allowances only? Why should allowances which are not purely compensatory in nature not be considered for the calculation of gratuity? In the past, a salary would contain only basic salary and dearness allowance. But in the current industrial scenario, the concept of salary or remuneration has changed, and nowadays it is not the remuneration payable to an employee but a cost to the company!

Please follow the links:

- https://www.citehr.com/646656-gratuity-qualifying-salary-some-observations-shift-concept.html

- http://madhu-t-k.blogspot.com/2024/04/gratuity-qualifying-salary-some.html

Madhu T K