Home > Employee Benefits, Labour Law > Recent Amendments to Payment of Gratuity Act, 1972

Recent Amendments to Payment of Gratuity Act, 1972

June 24, 2012

Following up on our post last week about the Recent amendments in the ESI Act, this week we give a snapshot of the latest amendments in the Payment of Gratuity act 1972.

For a more detailed and simplified post on the Payment of Gratuity Act, click here

Key amendments of Payment of Gratuity Act 1972

 

S.NO Section Pre-amended position Post – amended position
1 4(3) The maximum amount of gratuity payable is Rs.3,50,000/ Now the maximum amount of gratuity payable is Rs.10,00,000/-
2 Sec.2(e) The definition of employee covers only those performing manual, semiskilled skilled, unskilled, supervisory technical or clerical or managerial or administrative work. Thus a person who is not performing any of the above said categories of work like a teacher is not covered as an employee. After the amendment, the definition has been broad based as to include any person, employed to do any kind of work. Thus the definition includes a teacher as an employee under the Act.

 

Note : For establishments in the state of Maharashtra :

1) Rule 9 of Maharashtra Gratuity Rules has been amended where by the gratuity payable to an employee/nominee/legal heir, can be paid by demand Draft or account payee cheque.

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  1. U.Preman
    January 9, 2014 at 3:21 pm | #1

    I was in 43 years continuous employment of a pvt.ltd. co. in Mumbai from 10.08.1970 to 31.05.2013, Throughout, I was getting annual increment, annual bonus and employer’s contribution to Provident Fund.On 29.05.2013, management gave me a letter stating that they are in the process of implementation of my retirement and I should retire on 31.05.2013.In the letter, they have praised and valued my long association/contribution to the co. I am not still given my dues.

    1 ) Is 2 days notice amounts to sacking ?.
    2 ) Am I eligible for 30 days gratuity ?.
    3 ) Am I eligible for Notice Pay ?.
    4 ) In our Co. it is said that DA is merged in Basic. Annual increment, when given, is distributed in CCA/HRA/Education allowance/Conveyance allowance/ Special allowence etc. In 43 years, my basic salary is Rs. 18915.00 only. Is there any provision to get Gratuity on CCA or any allowances ?.
    4 ) Is there any amendment to Gratuity act to get the 30 days gratuity ?.

    Please give me reply at the earliest.

    • January 16, 2014 at 9:55 am | #2

      Reply from the Author- @U.Preman – The details furnished by you are too brief to enable a reply to the queries. However, there is no amendment to Gratuity Act permitting gratuity at 30 days and gratuity is payable only on basic pay + dearness allowance and not on CCA.

  2. rajiv
    December 13, 2013 at 4:45 pm | #3

    i resign after completing 18 years of service in Pvt school and school accepted my resignation. But on demanding my gratuity from them they say “we terminated your services by accepting your resignation”as a linen t gesture but enquiry was opened against you and you found guilty of moral turpulid. Am I eligible for gratuity that is coming around 2,80,000. Please advice

    • January 6, 2014 at 3:10 pm | #4

      acceptance of resignation cannot be deemed dismissal which is a punishment post domestic inquiry. an act of moral turpitude will have to be established after proper inquiry which should be preceded by a charge sheet and followed by a show cause where the employee is given a fair chance of presenting his case.I don’t know how far this is true but if the act has not been established to have been omitted or committed in the course of employment then gratuity cannot be forfeited and claim to that effect can be made to controlling authority.

    • January 16, 2014 at 9:59 am | #5

      Reply from the Author-@Rajiv – Reply from Nidhi Shukla is right and to the point. Gratuity is forfeited for a misconduct involving financial loss or involving moral turpitude proved in a domestic enquiry as per sec 4(6) of the Gratuity Act and not otherwise

  3. Philip
    November 22, 2013 at 6:48 am | #6

    Greetings, I work for a MNC and I have completed my 6 years 191 days in my organization.So,Will I get gratuity for 6 years or 7 years? [Is something above 6 years 184 days taken as 7 years?]. Thanks

    • January 16, 2014 at 10:00 am | #7

      Reply from the Author- @philip – In your case gratuity is payable for 7 years since you have completed 6 years + more than six months in a period of continuous service

  4. Atul Rastogi
    November 16, 2013 at 12:35 pm | #8

    I have joined my organisation on 25th June, 2007 and will leave on 10th Jan, 2014. Will I get gratuity for 6 years or 7 years?

    • narendreagarwal
      November 16, 2013 at 1:15 pm | #9

      you will get gratuity for seven years

  5. Kalyan Sikdar
    October 28, 2013 at 11:36 am | #10

    Hi I have worked from 08/Sep/2008 to 08/Aug/2013. I am eglible for Gratuity or not. If yes kindly provide me some reference as the Company HR saying for Grauity payment 5 Years required.

    • November 20, 2013 at 9:15 am | #11

      Reply from the Author – It appears you have completed 4 years and 11 months. In the first place the rule is that as per Sec.4(1) of the Payment of Gratuity Act 1972, an employee has to complete five years of continuous service. However Sec.2A of the Payment of Gratuity Act defines what is continuous service for the employees whose service is interrupted and are not in continuous service. It has two sub-sections (1) & (2). Sub-section (2) treats an employee who has completed 240 days in the 12 months preceding his date of termination as deemed to have put in one year of service.

      However it appears that some companies are not accepting this interpretation stating that sub-sec.(2) is not applicable to regular employees (those who are on regular pay roll)and they are covered by sub-sec.(1) in which case they shall put in five years of service.

      Thus it is a matter of interpretation and too technical in nature. Please note that this is not any legal opinion but only an information for your guidance. You are advised to consult a labour law consultant/ advocate for any guidance.

  6. kishor p patole
    October 8, 2013 at 1:34 am | #12

    I have completed 8 years in maharashtra govt as a lab tech and i left the job 4/2/2000 may i got the gratuty

    • November 20, 2013 at 9:17 am | #13

      Since you are a government employee, the Payment of Gratuity Act 1972 is not applicable to you. Please go through the eligibility criteria under Government Gratuity Rules of Maharashtra

  7. Mehul
    October 7, 2013 at 7:56 am | #14

    Sir,
    . we are a industrial unit employing more than 10 employees. One of them has joined at 28.11.2007 and has resigned on 5.10.2013. During his tenure he was absent from work for 8 months ( 2 months x 4 yrs.) as he went to his hometown. Pls. Suggest should I deduct those days & how much to pay?

    • November 18, 2013 at 1:01 pm | #15

      It is difficult to reply on short facts in this forum

  8. Laita
    October 5, 2013 at 2:59 pm | #16

    Is gratuity applicable in proprietorship firm as i have been working since 12 years.
    Is it given on leaving the firm or in between

    • November 18, 2013 at 1:00 pm | #17

      Reply from the Author – Gratuity Act is applicable to every firm whether it is a proprietarship or partnership firm or one that is incorporated under Companies Act 1956 provided it is an establishment under the Shops and Establishment Act of the State in which it is located. Gratuity is admissible to an employee on leaving the service of an organization only

  9. Kumar
    September 23, 2013 at 1:12 pm | #18

    Hello,

    I am working in a private limited company from 15th Feb 2009. Please let me know the earliest date on which I can leave the company and get gratuity also.
    Also does the 240 days of 5th year limit includes Saturday and Sunday to be counted or only working days? (My company follows only 5 day working per week)

    • November 18, 2013 at 1:04 pm | #19

      Reply from the Author – As per Sec.4 of the Gratuity Act 1972, an employee who puts in a continuous service of 5 years is eligible for gratuity

  10. sai
    September 21, 2013 at 12:29 am | #20

    HI ALL
    MY FATHER WORKED AS A HEAD OF DEPARTMENT IN MECHANICAL BRANCH
    .AND WORKED FOR ABOUT 26 WITH OUT ANY BREAK IN SAME COLLEGE.LAST YEAR MY FATHER DIED IN ACCIDENT. COLLEGE SAYS NO GRATUITY FOR UNADIDED COLLEGE. MY FATHER LAST SALARY WAS 34543,WITH BASIC AND OTHERS 35555. AND MY MOTHER RECIEVE PENSION OF ABOUT 2000
    WILL GRATUITY COMES,IF YES CAN YOU TELL ME HOW MUCH

  11. Ankur Gupta
    September 17, 2013 at 3:32 pm | #21

    Is an administrator / office manager working in an unaided private recognized primary school who has completed 5 years of service eligible for gratuity?

    • November 18, 2013 at 12:59 pm | #22

      Reply from the Author – The Gratuity Act 1972 covers personnel in managerial position also

  12. K.VISWANATHA REDDY
    August 26, 2013 at 3:00 pm | #23

    Respected Sir,

    We would like to bring to your kind notice that some of the contract workers working since 1991 were regularized in zuari cement ltd, yerraguntla in 2001. Their old PF number continued even after regularization. Now some of them are going to be retired on attaining of superannuation. Kindly clarify how the gratuity is to be calculated for the above employees from the date of joining i.e. 1991 demand before Management.

    Best Regards

    For ZUARI CEMENT
    Employees Union

    K. Viswanatha Reddy
    General Secretary

    Awaiting for your reply on the above, please.

    K. Viswanatha Reddy
    Zauri Cement – Yerraguntla.

  13. R K Khanna
    August 26, 2013 at 1:20 pm | #24

    in the case of a teacher of a recognized public school for calculating the gratuity the formula mentioned in Muthuswamy’s handbook is “@ 15 days emoluments (basic pay + D A) x No. of completed yrs. of service subject to a maximum of Rs. 10 Lacs. Kindly clarify whether for a charitable organisation such as a school the formula of Monthly wages last drawnx15 days/26days will apply or as earlier mentioned of 15daysXNo. of completed yrs of service.

    • November 18, 2013 at 12:58 pm | #25

      Reply from Author – The formula for calculating gratuity will be same for an establishment if covered by Gratuity Act 1972.
      Last drawn wages x 15days X No. of completed yrs. of service”
      ———————–
      26

  14. R K Khanna
    August 26, 2013 at 1:17 pm | #26

    in the case of a teacher of a recognized public school for calculating the gratuity the formula mentioned in Muthuswamy’s handbook is “@ 15 days emoluments (basic pay + D A) x No. of completed yrs. of service subject to a maximum of Rs. 10 Lacs. Kindly clarify whether for a charitable organisation such as a school the formula of Monthly wages last drawnx15 days/26days will apply or as earlier mentioned of 15daysXNo. of completed yrs of service.

  15. Gaurav
    August 13, 2013 at 3:23 am | #27

    I joined on 2Feb 2009 in an organistaion with 5 working days in a week. When would I be eligible for Gratuity? Is 240 /190 working days or can be considered as Week-off days too?

    • August 19, 2013 at 9:25 am | #28

      Reply from Author-@Gaurav- Irrespective of whether an establishment has six day or five day week schedule , gratuity is admissible to an employee on completion of continuous servcie of five years.However, if an employee for any reason is not able to complete the fifth year in full but completes only 190 days in the 12 months preceding the date of his termination/resignation, he is deemed to have worked for one year provided the establishment has five day week schedule in terms of Sec.2-A of the Gratuity Act.

      the views & replies given in this forum are clarifications meant for reference and guidance of the readers to explore further on the issue and take call on the issue. These should not be construed as legal opinion or advice

  16. narendra agarwal
    August 8, 2013 at 4:30 pm | #29

    Date of joining 2 July 2007 Last day of working 24 July 2013 with notice period 23 Oct 2013.
    Gratuity will for 6 years or 7 years?
    Calculation will 15/26 *6 or15/21*6 please advise

    • August 19, 2013 at 9:26 am | #30

      @Narendra:
      The formula will be Last drawn wages x15 x 6
      —————————
      26

      the views & replies given in this forum are clarifications meant for reference and guidance of the readers to explore further on the issue and take call on the issue. These should not be construed as legal opinion or advice

  17. Suhati
    July 30, 2013 at 5:47 pm | #31

    Hello,

    I am from Noida and spend 4 years 9 months continuos. but my company did not give me gratuity. There is any way to claim on this.

    • August 19, 2013 at 9:29 am | #32

      @Suhati – You can approach the Controlling Authority under the Payment of Gratuity Act 1972.

      the views & replies given in this forum are clarifications meant for reference and guidance of the readers to explore further and take appropriate decisions on their own or through professional help. These should not be construed as legal opinion or advice

  18. Namrata
    July 18, 2013 at 4:31 pm | #33

    Hi, I joined organisation on 21/8/2008. my LWD is 20/10/2013. I have accumulated 45 loss of pay days. am I eligible for gratuity?

    • August 19, 2013 at 9:32 am | #34

      @Namrata – assuming your last working day is 20-10-13, you will be eligible for gratuity provided the 45 days absence, though on loss of pay, is not treated as break-in-service by the company. you need to refer to the company HR policy manual for the same.

      the views & replies given in this forum are clarifications meant for reference and guidance of the readers to explore further and take appropriate decisions on their own or through professional help. These should not be construed as legal opinion or advice

  19. Tirumalappa
    July 11, 2013 at 5:39 pm | #35

    What if the Employer intentionally reduce the basic/da of the employee intentionally after the resignation(notice period payment)? is the employee entitled for the calculation based on the salary drawn before the resignation or the last drawn before the relieving from his services?

    • August 19, 2013 at 9:33 am | #36

      @Tirumalappa – As per sec.(4) gratuity is to be calculated on the basis of wages last drawn by an employee at the time of termination of service.Whether the wages were reduced intentionally or for any other reason can be a matter of dispute and needs to be proved on the basis of evidence before the Controlling authority.

      the views & replies given in this forum are clarifications meant for reference and guidance of the readers to explore further and take appropriate decisions on their own or through professional help. These should not be construed as legal opinion or advice

  20. K.VISWANATHA REDDY
    July 9, 2013 at 2:49 pm | #37

    Respected Sir,

    We would like to bring to your kind notice that some of the contract workers working since 1991 were regularized in zuari cement ltd, yerraguntla in 2001. Their old PF number continued even after regularization. Now some of them are going to be retired on attaining of superannuation. Kindly clarify how the gratuity is to be calculated for the above employees from the date of joining i.e. 1991 demand before Management.

    Best Regards

    For ZUARI CEMENT
    Employees Union

    K. Viswanatha Reddy
    General Secretary

  21. Pravin
    July 1, 2013 at 1:23 pm | #38

    Dear Sir,
    As iI said earlier my date of joining is 17th Aug. 2008. & releaving date is 02 july 2013 but last year I was undergone a surgery & not able to attain duty for 2 months so i cant get the earned leaves.
    my query is still can i get gratuity.
    Further my present days in this year are 215 & 8 days for Layoff, 17 leaves taken & 8 Public holydays, so the total days are 248 days. Can i apply for gratuity.

    • August 19, 2013 at 9:37 am | #39

      @Pravin – you can apply unless the two month period of your absence for surgery , is not treated as break-in-service by the company.

      the views & replies given in this forum are clarifications meant for reference and guidance of the readers to explore further and take appropriate decisions on their own or through professional help. These should not be construed as legal opinion or advice

  22. avninder kaur
    June 30, 2013 at 6:38 pm | #40

    dear sir;
    i am a center government employee as i am working in PGI chandigarh as a registered nurse.now i want to regine from my job am i eligible to get gratuity as i completed my 15 year and 5 month f job.my date of joining is 3.3.1998

    • August 19, 2013 at 9:38 am | #41

      @Avninder – Since you are a central government employee as stated by you,your right to gratuity is governed by the Central Government Gartuity Rules but not by the Payment of Gratuity Act .Kindly refer to Government Gratuity Rules.

  23. Amit Bhandare.
    June 30, 2013 at 9:29 am | #42

    Dear Sir,
    As per the recently amended law am I eligible to get Gratuity. My joining date was 1.04.2009 and I have resigned on 20th June 2013, I am on one month notice period, so my last working day with the company would be 21st July 2013. I am working with Finolex Cables Ltd.

    • July 11, 2013 at 5:23 pm | #43

      Reply From Author-@Amit Bhandare- The Gratuity Act entitles an employee to gratuity on completion of continuous service of five years.However in terms of section 2A, an employee who completes 240 days of service in the twelve months preceding resignation, is deemed to have completed one year of service if he is employed in a six day work schedule.Accordingly you may take a call.

      please note that the views given in this forum are clarifications meant for reference and guidance of the readers to explore further on the issue and take call on the issue. These should not be construed as legal opinion or advice

    • August 19, 2013 at 9:39 am | #44

      @Amit -as per the dates given by you, Since you have completed only 4 years, 3 months and 20 days , you are not eligible for gratuity under the Payment of Gratuity Act.

      the views & replies given in this forum are clarifications meant for reference and guidance of the readers to explore further and take appropriate decisions on their own or through professional help. These should not be construed as legal opinion or advice

  24. Mohd Sadiq niyazi
    June 28, 2013 at 11:00 pm | #45

    Dear sir
    My joining date is 14 th aug 2008 in Sbi life insurance if I resigned from company plz confirmed me I am eligible for gratuity yes or no !!!

    With regards
    Mohd Sadik niyazi

    • July 11, 2013 at 5:21 pm | #46

      Reply from Author-@ Mohd Sadiq niyazi – The Gratuity Act entitles an employee to gratuity on completition of continuous service of five years.However in terms of section 2A, an employee who completes 240 days of servcie in the twelve months preceding resignation, is deemed to have completed one year of service if he is employed in a six day work schedule.Accordingly you may take a call.

      please note that the views given in this forum are clarifications meant for reference and guidance of the readers to explore further on the issue and take call on the issue. These should not be construed as legal opinion or advice

    • August 19, 2013 at 9:48 am | #47

      @Mohd Sadiq niyazi – As per sec.4(1) of the Payment of Gratuity Act, an employee who puts in a continuous service of 5 years at the time of termination of service, is only eligible for gratuity.Please take a call accordingly.

      please note that the views given in this forum are clarifications meant for reference and guidance of the readers to explore further on the issue and take call on the issue. These should not be construed as legal opinion or advice

  25. Sukhi
    June 25, 2013 at 11:54 pm | #48

    Sir, I have put in 37 years of service in private public school covered under Payment of Gratuity Act, 1972. The school is paying gratuity only for 33 years telling me that this is the maximum period of entitlement. The Act is silent on maximum number of years for which an employee is eligible for gratuity. Is there any court ruling or judgement having allowed gratuity beyond 33 years of service, which I may quote to school and get my entitled gratuity for 37 years the amount of which is within the limit of Rs.10 lac.regards

    • July 11, 2013 at 5:20 pm | #49

      Reply from Author-@Sukhi- The Payment of Gratuity Act does not prescribe any limit on the maximum number of years of service but only fixed the limit on the gratuity payable at Rs.10,00,000/-You can quote Sec.4 of the Payment of Gratuity Act.Thus the School can calculate gratuity on the total number of years of service subject to the maximum of Rs.1000000/-

      please note that the views given in this forum are clarifications meant for reference and guidance of the readers to explore further on the issue and take call on the issue. These should not be construed as legal opinion or advice

  26. Sukhi
    June 25, 2013 at 11:52 pm | #50

    Sir, I have put in 37 years of continuous service in private public school covered under Payment of Gratuity Act, 1972. The school is paying gratuity only for 33 years telling me that this is the maximum period of entitlement. The Act is silent on maximum number of years for which an employee is eligible for gratuity. Is there any court ruling or judgement having allowed gratuity beyond 33 years of service, which I may quote to school and get my entitled gratuity for 37 years the amount of which is within the limit of Rs.10 lac.regards

  27. Pravin
    June 21, 2013 at 3:06 pm | #51

    Dear Sir,
    I joined the company on 17 th Aug. 2008 & resign on 08 june 2013. It almost 1.5 month short for completing 5 years.
    Can i apply for gratuity & on what i do to convience the company.

    • July 11, 2013 at 5:19 pm | #52

      Reply form the Author @pravin – You should be eligible in terms of Sec.4 read with Sec.2-A of the Payment Gratuity Act 1972 since you have completed 4 years and more than 240 days.

      please note that the views given in this forum are clarifications meant for reference and guidance of the readers to explore further on the issue and take call on the issue. These should not be construed as legal opinion or advice

  28. Akki
    June 14, 2013 at 8:06 pm | #53

    Dear Sir,
    I have worked from 10-7-08 and tenedered my resignation on 13-6-13 for servicing of notice period of 45 days. Am i eligible for gratuity.

  29. hardik495
    June 14, 2013 at 1:21 pm | #54

    who all are covered under the POGA. Are employees of private companies covered under this act.

    • July 11, 2013 at 5:24 pm | #55

      Reply from Author-@Hardik -Any person employed in a shop or establishment employing 10 or more persons or in factory within the menaing of Factories Act or a mine within the emaning of Mines Act etc. will be covered

      Note : please note that the views given in this forum are clarifications meant for reference and guidance of the readers to explore further on the issue and take call on the issue. These should not be construed as legal opinion or advice

  30. Hemant Shigwan
    June 12, 2013 at 3:04 pm | #56

    Dear Sir,
    last my 2 month basic has been reduced to 8452 from 12500 and i have completed 5 yrs and 5 months of service and resigned
    how much should be my Gratuity?

    • July 11, 2013 at 5:26 pm | #57

      reply from Author-@Hemant-The gratuity will be calculated on the last drawn wages which means the wages drawn by you at the time of your resignation.in terms of Sec.4 of the P.G.Act. Please be guided accordingly

      Note : please note that the views given in this forum are clarifications meant for reference and guidance of the readers to explore further on the issue and take call on the issue. These should not be construed as legal opinion or advice

  31. M.K.Peerbhai
    June 7, 2013 at 12:13 pm | #58

    Sir – I have worked as a Teacher for more than 25 years in a school. The school has the LIC Group Gratuity Scheme. The LIC has settled Gratuity as per school rules and not as per the Gratuity Act. They have paid me by dividing salary by 30 days and not 26 days as per the Gratuity Act. Hence I have received less Gratuity. Please let me know whether the Gratuity Act supersedes the School rules while calculating Gratuity. Many Thanks.

    • July 11, 2013 at 5:26 pm | #59

      Reply from Author-@ M K Peerbhai – In terms of Sec.13 of the PG Act, it prevails over any other scheme/rules unless the provisions under the scheme or the rules are more beneficial since the P.G Act is applicable to teachers also.In my view, the School shall calculate both under the scheme and the Act and pay you the more beneficial one

      Note : please note that the views given in this forum are clarifications meant for reference and guidance of the readers to explore further on the issue and take call on the issue. These should not be construed as legal opinion or advice

  32. Dr.Bhola Lal Srivastava
    June 5, 2013 at 2:59 pm | #60

    one employee of dept.of animal husbandry worked as dressor(iv class) for five years and then selected as livestock extention officer and worked for thirty years.He retired in May,13.Now employer say that his services will be counted for thirty years in the department and gratuity will be calculated on that basis only.Department is same but due to not considering the previous service as fourth class employee,deparment is dimnishing the amount.what is the rule and what is to be done?

    • June 7, 2013 at 10:50 am | #61

      Reply from the Author-@Dr. Bhola – The case appears to be of a State Government employee and therefore does not fall within the purview of the Payment of Gratuity Act 1972 as the same is not applicable to Government establishments.State Government employees are governed by the gratuity rules of their State.Therefore you need to refer to the your State rules.

  33. Vidula
    June 3, 2013 at 10:44 pm | #62

    what if the leave was an unpaid one, without any notification to the employer?

  34. Vidula
    June 3, 2013 at 10:43 pm | #63

    sir,
    if an employee works for a period of 6-7 years, then takes an unpaid leave (without notification) and then comes back again and works for 2 years and then resigns, is he still eligible for the gratuity?

    • June 4, 2013 at 11:07 pm | #64

      Reply from the Author-@Vidula-It appears there are two spells of service seperated by a period of unpaid leave. It is not clear whether this period of absence is treated as leave without pay or unauthorised absence.Notwithstanding this,since the employee has already completed a continuous service of 6-7 years in the spell prior to the period of his unpaid leave, he will any how, will be eligible for gratuity despite the period of his absence treated as unauthorized.

      Note : please note that the views given in this forum are clarifications meant for reference and guidance of the readers to explore further on the issue and take call on the issue. These should not be construed as legal opinion or advice.

  35. P.V.Patel
    May 29, 2013 at 1:08 pm | #65

    Sir , In a Public Sector Undertaking , if Wage Revision under IDA pattern is due for revision w.e.f 01.01.2017 and an employee’s date of retirement falls on 30.04.2016 , would he be eligible for any Pay Revision Benefit in the calculation of his Gratuity ? or simply his actual Last Pay Drawn only be reckoned for calculation?

    • June 4, 2013 at 11:04 pm | #66

      Reply from the author-@P.V.Patel-Wage revisions normally take place by way of agreements/settlements between managements and employees unions/associations. If the parties agree that such wage revision shall be effective only from date like 01-01-2017, an employee who retires before that effective date say 30-4-2016 cannot claim benefit of such wage revision and hence his gratuity cannot be calculated on the basis of the revised wages, unless there is any specific clause in the agreement/settlement making the revised wages applicable solely for the purpose of gratuity in case of employees retiring prior to the effective date.

      Note : please note that the views given in this forum are clarifications meant for reference and guidance of the readers to explore further on the issue and take call on the issue. These should not be construed as legal opinion or advice.

  36. R.Hemavathy
    May 28, 2013 at 6:50 pm | #67

    Sir, I have worked in a Construction Company 14 August 2008 to 31 March 2013,Our Concerned Hr Told that Gratuity applicable for Only employee completed 5 Years..Please tell whether am eligible for Gratuity or Not .

    • June 5, 2013 at 8:34 am | #68

      Reply from the Author-@Hemavathy – Yes. An employee who puts in five years of continuous service is only eligible for gratuity as per sec.4(1) of the Payment of Gratuity Act 1972.However by virtue of Sec.2-A, an employee who completes 4 years and 240 days if the establishment has six day week work schedule or 4 years and 190 days in a five day week work schedule, is deemed to be in continuous service for five years.

      Note : please note that the views given in this forum are clarifications meant for reference and guidance of the readers to explore further on the issue and take call on the issue. These should not be construed as legal opinion or advice

  37. Hari
    May 27, 2013 at 7:01 pm | #69

    Hari :Hello Sir,
    Need clarification. I had joined an Organization on 4th Feb 2009. Per My Offer letter I am covered under Gratutiy Act 1972. The company follows 5 days week with Saturday & Sunday are Mandatory Off. Including my Notice Period, I will be relieved from services by August 7th 2013. Kindly clarify Am I eligible for Gratuity ? How Can I quote this to my HR Team ? Appreciate your reply, please.

    • June 4, 2013 at 3:50 pm | #70

      Reply from the Author-@Hari – An employee is eligible for gratuity in terms of sec.4(1) of the Gratuity Act 1972 on completing five years of continuous service. However an employee may not be able to complete the fifth year in full for various reasons like termination of service or resignation or sudden closure of establishment etc.In that event, in terms of sec.2-A of the Gratuity Act, an employee who completes 240 days of service in a period of 12 months preceding the date of termination/resignation, if he has six day week work schedule or completes190 days of service if he has a five day week work schedule, is deemed to have completed one year of service. You have stated that you have a five day work schedule. In your case, you have completed 4 years from 4-2-2009 to 3-2-2013 and then worked for only 185 days in the last leg of your tenure. I am afraid technically whether your case can be considered. However an employer can still pay gratuity, notwithstanding technicalities.

      Note : please note that the views given in this forum are clarifications meant for reference and guidance of the readers to explore further on the issue and take call on the issue. These should not be construed as legal opinion or advice.

  38. Hari
    May 22, 2013 at 12:45 am | #71

    Hello Sir,

    Need clarification. I had joined an Organization on 4th Feb 2009. Per My Offer letter I am covered under Gratutiy Act 1972. The company follows 5 days week with Saturday & Sunday are Mandatory Off. Including my Notice Period, I will be relieved from services by August 7th 2013. Kindly clarify Am I eligible for Gratuity ? How Can I quote this to my HR Team ? Appreciate your reply, please.

    • Hari
      May 27, 2013 at 6:53 pm | #72

      Hello Sir, Awaiting for your reply on the above, please

  39. Aravind Nair
    May 11, 2013 at 12:58 pm | #73

    I was joined a Private Ltd. Co. in July 1985 and after completing 11 years my name was transferred to their Sister Concern on 01.04.1996 under the same group and I resigned from 1st June 2012. i.e. 11 years in their one Company and thereafter 16 years in their other Organization under one Managing director . Can I claim for gratuity form both Organization and what is the procedure of calculation of gratuity and also let me know the legal formalities

    • May 17, 2013 at 8:55 am | #74

      Reply from the Author-@Aravind – Since you have resigned from the first company after putting in 11 years of service and joined the second company and served for another 16 years,the service in both the organizations can be treated as separate though they are headed by the common Managing Director and you can claim gratuity from both the organizations. Gratuity can be calculated by the following formula ;

      Last drawn wages for the month X 15 X no.of years of service
      ————————-
      26
      Note :Any period of service in excess of six month can be rounded off to one year.
      You may have to fill the prescribed forms under the Act and submit it to employer for payment as per Sec.7 of the Act

      Note : please note that the views given in this forum are clarifications meant for reference and guidance of the readers to explore further on the issue and take call on the issue. These should not be construed as legal opinion or advice.

  40. Nayal
    April 10, 2013 at 4:38 pm | #75

    sir, I was joined 01.03.2008, but confirm in 01.07.08. and Oct’11 to 31st Jan.12 i was on leave in maternity ground(paid by ESI). now i m resigning my job in 12th may 2013. i am eligible for gratuity or Not ?

    • April 17, 2013 at 7:31 pm | #76

      Reply from the Author-@Nayal – The period of maternity leave forms part of continuous service in terms of Sub-sec.(1) of Sec.2-A of the Payment of Gratuity Act 1972 and hence in my view, you are eligible for gratuity. Please note that the reply is meant for your guidance and reference only and is not a substitute for a legal opinion.

  41. April 9, 2013 at 11:08 am | #77

    Sir

    I Have question with you – i was joined limited company on 01.10.2008 . 1 year training programme and also one year probation period after two year we have received confirmation letter from our company. last month i was regined on 25.03.2013. we are eligible gratuity? how many service years eligible to gratuity ?

    • April 17, 2013 at 7:34 pm | #78

      Reply from the Author-@Venkat – The minimum eligibility for gratuity is five years of continuous service prior to resignation as per Sec.4(1) of the Payment of Gratuity Act 1972.However I refer you to Sec.2-A of the Gratuity Act which grants the benefit of one year service to an employee who puts in a minimum of 240 days in the preceding 12 months prior to resignation in an establishment with 6 day week working schedule or 190 days in an establishment with less than six days a week working schedule. You have put in 4 years 197 days prior to resignation.You may accordingly take a call on your eligibility. Please note that the reply is meant for your guidance and reference only and is not a substitute for a legal opinion

  42. April 9, 2013 at 11:00 am | #79

    Sir

    I Have question with you – i was joined pvt limited company on 01.10.2008 to till date. 1 year training programme and also one year probation period after two year we have received confirmation letter from our company.Hence i request you how many service years eligible to gratuity?

    • April 18, 2013 at 9:34 am | #80

      Reply from the author-@Prabhakar- If you were recruited as an employee and provided one year training and kept under one year probation, the two year period will form part of your qualifying service for gratuity, once you are confirmed and thus you will be eligible for gratuity as of 1-10 2013 since an employee has to put in a continuous service of minimum five years to claim gratuity. Please note that the reply is meant for your guidance and reference only and is not a substitute for a legal opinion

  43. Mercel S
    April 5, 2013 at 6:09 pm | #81

    I have a question with you – whether employers divide the employees of approx 60 in different 10 companies (group /sister concerns – employers are either directors/partners/propertiers) and employee strength in each company is less than 10 is eligible for gratuity ?

    • April 18, 2013 at 9:33 am | #82

      Reply from the Author-@ Mercel – If there is a functional integrability among all the ten companies, it is possible to apply Gratuity Act but if the companies are independent in their own right, Gratuity Act is not applicable

  44. amit sharma
    March 28, 2013 at 4:10 pm | #83

    yes ,the leave sanctioned was with wages,and hence i should be eligible for gratuity.
    but as the company has declined my request what option do i have to claim my gratuity amount.

  45. amit sharma
    March 28, 2013 at 4:06 pm | #84

    hi ,i had completed 4 years and 191 days at my previous organisation.it has a 5 days a week functioning.they have declined my request of payment of my gratuity.
    what should i do?
    my date of joining was 4th july 2008 and my last working day was 11th jan 2013.

  46. B.N.VIJAY KUMAR
    March 26, 2013 at 12:37 pm | #85

    Thank You Sir for your immediate reply

  47. B.N.VIJAY KUMAR
    March 26, 2013 at 12:36 pm | #86

    Dear Sir,
    My Name is Vijay. I have worked for 7 years in company has an accounts officer. I submitted my resignation on 01.02.2013.I asked for Gratuity, but my Proprietor is telling he will settle my gratuity after August 2013 .He has signed my PF application.

    • March 27, 2013 at 1:07 pm | #87

      @Vijaykumar- Reply from Author-As per Sec. 7 of the Payment of Gratuity Act 1972, the employer needs to pay the gratuity within 30 days of it being payable. Thus your gratuity became payable on the date of your resignation. Please note that this reply is given only for your reference and guidance and is not a substitute for a legal opinion

  48. Sachin Gururaj
    March 25, 2013 at 3:44 pm | #88

    Dear Author

    The mention is very crisp and clear, I am a software engineer and currently working in an organization which has more than 20people and i have completed 5 years. The question is the company doesnt fall under shops and eshtablishment act or even mine or neither it is a manufacturing industry. This is a Software solutions company which is registered under STPI(Software technology park of India), is my employer liable to pay me gratuity?

    • March 27, 2013 at 1:09 pm | #89

      @Sachin-Reply from the author- An establishment dealing with software solutions on commercial considerations will fall under the Shops and Establishments Act by virtue of the definition of commercial establishment in the Acts. However since the Shops Act is a State Act, please verify whether the Shops Act of your state contains any specific provision excluding the IT or software companies from the purview of the Act and take a decision accordingly. Please note that this reply is given only for your reference and guidance and is not a substitute for a legal opinion

  49. Uma Sharma
    March 24, 2013 at 11:04 pm | #90

    I joined this organisation on 28/JUL/1972 on purely temporary basis, since no permanent post was available, on compassionate ground. All the required formalities like character verification and medical examination were done at that time. Later I was given the next higher post w.e.f 24/MAR/1973 without giving any service break. After attaining the age of superannuation, I was relieved from the services of the company w.e.f. 31/JAN/2012. Although for other administrative purposes like grant of increment after completion of 18 years service in JUL/1990 under wage settlement & earned leave etc my date of appointment was considered as 28/JUL/1972. But for purpose of calculation of gratuity, my service was counted as 39 years instead of 39 years 6 months and 4 days. Please advise whether the length of service rendered by me is 39 years or 39 yrs 6 months 4 days and gratuity paid by my Company is right or otherwise.

    • March 26, 2013 at 1:29 pm | #91

      @Uma – Reply from the author – The period between 28-7- 1972 to 23-3-73 shall also count for gratuity since you were under the same employer for the above period and there was no break in service as stated by you and shall form part of the continuous service within the meaning of Sec.4(1) read with Sec.2-A of the Gartuity Act.Please note that this reply is given only for your reference and guidance and is not a substitute for a legal opinion

  50. March 9, 2013 at 7:21 pm | #92

    Reply from the Author-@RM – As per the definition of continuous service under Sec.2-A of the Gratuity Act 1972, if the leave sanctioned ,is with wages,it will be part of continous servcie and hence you should be eligible for gratuity

  51. Aparna Sreeram Venugopal
    March 8, 2013 at 7:33 pm | #93

    Sir, I joined on 30 May 2008 and my last working day is 21 March 2013, am i eligible for gratuity?

    • March 26, 2013 at 1:26 pm | #94

      @Aparna- Reply from the Author- You should be eligible for gratuity as per Sec.4(1) read with Sec.2-A of the Payment of Gratuity Act. This is what was held in Mettur Beardsell Ltd V.Regional Labour Commissioner, 1998 III LLN 414 (Mad HC). Please note that this reply is given only for your reference and guidance and is not a substitute for a legal opinion.

  52. Vinit
    March 1, 2013 at 11:21 pm | #95

    Sir,My Shop Has 4 workers,in which 2 workers are working since 30 years,now they are not working in discipline way,and are asking for gratuity,in your blog it is mentioned (Shops and commercial establishments employing ten or more persons on any day during the preceding twelve months are in gratuity act.).in our shop since 50 yrs our labour strength didn`t exceed to max 5,so are they both eligible for Gratuity?

    • March 26, 2013 at 1:25 pm | #96

      @Vinit-Reply from the author- Yes . You are correct, the Payment of Gartuity Act is not applicable to your shop

  53. Pankaj Gavankar
    February 24, 2013 at 1:49 pm | #97

    I have worked for an ISO Certified organisation for 9 yrs. & 3 mths. I left the job in May 2009. I was unaware of Gratuity Laws, as some one told me, that I am eligible for it. The organisation I was working for is into service industry & a Proprietorship firm. Am I eligible, Please Guide me.

    • March 26, 2013 at 1:24 pm | #98

      @Pankaj- Reply from Author – If your organisation is a shop or commercial establishment or a factory employing ten or more persons, you will be eligible for gratuity under the Payment of Gratuity Act 1972

  54. Thirunavukkarasu
    February 19, 2013 at 8:59 pm | #99

    I have worked in an IT organization about 4 years and 10 Months and 28 days. They are denied gratuity for me and saying your not completed 5 full years even short fall of 1 day is not eligibility for gratuity this is what they said reason for dening gratuity for me. I have showed that contineous service explaination even then they denied.. What shall i do now? how to ask them again to give my gratuity? is there any way to approach them like legally? where is the amandment or explanation saying that 240 days in 5th year is enough for 5th year eligibility henceforth your eligible for gratuity? pleae advice on this matter…

    • March 9, 2013 at 7:16 pm | #100

      Reply from the Author @ Thirunavukkarasu – There is a provision under the Payment of Gratuity Act to file a claim for gratuity before the Controlling authority under Sec.7 of the Act.You can avail this remedy. You can cite Mettur Beardsell case decided by the hon’ble Madras High Court in this regard. You can check this link for the details of the judgement – http://www.scribd.com/doc/58368728/Madras-High-Court-Gratuity-Judgement

      Please seek advice from a practicing labour Law consultant / advocate for further help.

  55. prabha shankar deota
    February 19, 2013 at 8:48 am | #101

    Sir
    I worked 18year and4m month in a private managed school as a teacher.there is no provision of graituty there. Can i get graituty or anything from the school by law?

    • March 9, 2013 at 7:19 pm | #102

      Reply from the Author @Prabha Shankar deota- Now Gratuity Act is applicable to teachers also after the recent amendment of the definition of employee.Please seek advice from a practicing labour Law consultant / advocate for further help regarding your specific case.

  56. Divya
    February 11, 2013 at 11:42 pm | #103

    Dear Sir,
    I have worked in a private Ltd company for 4 years 10 months, I have ~10 days of loss of pay in the 9th month of my 4th year service. Now my company is telling that I am not eligible for my Gratuity. Please help me out with your guidance.
    Thanks you
    Divya

    • March 9, 2013 at 7:20 pm | #104

      Reply from the Author-@Divya – Unless the period of loss of pay for 10 days is treated as break -in-service (which shall be so communicated to you by an order) you should be eligible for gratuity since you completed 4 years 10 months. Please seek advice from a practicing labour Law consultant / advocate for further help.

  57. PANDIYAN.G
    February 10, 2013 at 11:28 am | #105

    Dear Sir,
    I had joined in a MNC company in 01.02.2008 and resigned on 01.10,2012 my last working day was 31.12.2012.

    Total serviced period: 01.02.2008 to 31.12.2012 = 4 years 11 months.

    Now I have received a reply in my Full and Final settlement form the organization is that “0″ gratuity.

    As per the COE gratuity is eligible upon completion 5 years

    Please advice whether I am eligible to get my Gratuity.

    Kindly advice me suitably

    Best Regards

    G.PANDIYAN
    Chennai

    • February 19, 2013 at 9:47 pm | #106

      Reply from the Author @G Pandiyam – If your MNC is covered by the Gratuity Act and on the facts furnished by you should be eligible for gratuity in terms of Sec.4(1) read with Sec.2-A of the Gratuity Act. Please seek advice from a practicing labour Law consultant / advocate for further help.

  58. yogeshdutt singh
    February 9, 2013 at 9:00 am | #107

    I am working in public ltd company since 24/05/2008 and my basic saliry is 2450 & hra,convence,perform ance allowance total include payment is 7700 say how much graduty i get after 05 years.

    • February 19, 2013 at 9:48 pm | #108

      Reply from the Author @Yogesh – Gratuity is computable only on Basic +DA or any payment which is in the nature of Basic + DA last drawn by an employee. In your case, only basic has to be taken into consideration since other allowances are excludable as per the definition of wages under the Gratuity Act. Gratuity is calculated at the rate of 15 days wages for each completed year of service. Part of service in excess of six months shall be taken as one year. You can calculate gratuity at your end on the basis of the following formula

      last drawn Basic x 15 x no. of years of service
      ___________
      26

  59. Sanjiwan Dhote
    February 8, 2013 at 2:19 pm | #109

    SANJIWAN: I have joined the organization on 4 Feb 2008 and my last working day was on 30 Nov 2012 (4 years, 9 months, 26 days) with 3 months notice period , am I eligible for gratuity. Please suggest
    Thank You….

    • February 19, 2013 at 9:50 pm | #110

      Reply from the Author @Sanjiwan – If you have been attending office during the notice period, you should be eligible for gratuity in terms of Sec.4(1) read with Sec.2-A of the Gratuity Act

  60. Sanjiwan Dhote
    February 8, 2013 at 2:17 pm | #111

    Ramana :I was retired from the company services at the age of 63.5 years and completed 17 years of service. Am I eligible for gratuity for all the 17 years of service?

  61. Ramana
    February 7, 2013 at 10:36 am | #112

    I was retired from the company services at the age of 63.5 years and completed 17 years of service. Am I eligible for gratuity for all the 17 years of service?

    • February 10, 2013 at 9:39 pm | #113

      Reply from author-@Ramana-Mr. Ramana. The Payment of Gratuity Act is applicable to a factory as defined under the Factories Act employing 10 or more persons if it uses power or 20 or more persons if it does not use power in the manufacturing process or to a shop or establishment employing 10 or more persons on any day in the preceding 12 months or it has it’s own better gratuity scheme.Your company shall first need to satisfy this condition to be covered by the Gratuity Act.If so applicable, an employee who renders a continuous service of 5 years shall be eligible for gratuity on retirement.Thus on the basis of the short fact furnished by you you should be eligible for gratuity for all the 17 years, if you have served continuously for 17 years.

  62. Ashok
    February 5, 2013 at 4:55 pm | #114

    DEAR SIR,

    I AM WORKING SINCE DEC-2006 , PLS CALCULATE THE GRATUITY ON BASIC SALAY OR INCLUDING HRA + CONV + ESIC OR GROSS. PLS CONFIRM

    ASHOK

    • February 10, 2013 at 9:40 pm | #115

      Reply from Author-@Ashok- Gratuity is calculated on basic +DA last drawn by an employee but not on other allowances like HRA, Conveyance allowance, and contributions to ESI or P.F or Pension

  63. Sachin
    January 28, 2013 at 10:30 pm | #116

    I have joined in a company on 1st April 2009.in next two months i will complete 4 years in this organization. Now my query is that, if I want to avail gratuity benifits how may days I need to work in April 2013 – March 2014 year ? As you have said that after 4 years, 240 days are mandatory to count 5th year, do I need to work 240 days continusly (except week-offs and public holidays), If i take few paid leaves, wheather these leaves are being counted in these 240 days or I need to complete 240+ paid leaves?

    • February 10, 2013 at 9:38 pm | #117

      Reply from the author-@Sachin- You need to serve for another 240 days after completing fourth year.The period of 240 days can include paid leaves also but not leave on loss of pay

  64. R R MONDAL
    January 25, 2013 at 1:14 pm | #118

    If a person retires from a CPSU (under 1992 pay scale) in Aug,2010 after completing his 30 years of continuous service then can he get benefit of enhancement of Gratuity amount up to Rs. 10 Lac.?

    • January 28, 2013 at 10:37 am | #119

      Reply from the Author @RRMONDAL – Assuming that the Central Public Sector Undertaking is covered by the Payment of Gratuity Act 1972, one should be entitled to avail the benefit of enhanced limit of Rs.10 lacs since the amendment came into force with effect from 24th May 2010 and you have retired in August 2010.

  65. Y.S. Varahalu
    January 24, 2013 at 3:11 pm | #120

    I am YS, who worked in an organization for a period of 4 years 8 month and 5 days [(Including leaves (i availed 25 days levies in the 5th year) and notice period]. I want to know that whether I am eligible to getting gratuity. But organization has said that you should be completed 5 years then eligible for gratuity as per an internal policy of organization. please help me.

    • January 28, 2013 at 10:39 am | #121

      Reply from the Author-@YSVarahalu- If you have availed those 25 days leave with wages (if it is paid leave), then it should be included in computing 4 years 8 months and 5 days since the explanation to Sec.2A which defines continuous service as including the period of leave with wages as part of the continuous service. Please seek advice from a practicing labour Law consultant / advocate for further help.

  66. Radha Krishna
    January 24, 2013 at 8:01 am | #122

    I am in NPS i.e. I joined as Inspector in Indian Customs ( Central Government ) on 26.12.2005. Now I got another job i.e., Deputy Director in ESIC and I am leaving the present department. My question is “Am I eligible to Gratuity” if so please give me details Sir.

    • January 28, 2013 at 10:48 am | #123

      Reply from the Author-@Radha Krishna – The Payment of Gratuity Act 1972 is not applicable to government establishments. They are governed by separate gratuity rules. Your case need to be decided by Central Government gratuity rules.

  67. V.Rajesh
    January 19, 2013 at 10:41 am | #124

    I am V. Rajesh, who worked in an organization for a period of 4 years 9 month and 5 days. I want to know that whether I am eligible to for getting gratuity.

    • m.v.menon
      January 21, 2013 at 10:19 pm | #125

      yes . you are eligible for gratuity as you have completed 4 years and 240days of continuous service.
      vasumenon, labour law consultant.

      • Rajesh V
        January 22, 2013 at 4:13 pm | #126

        But, i have received mail reply from the company that i have not completed 5yrs of service. So i am not eligible for the gratuity as per gratuity act. Kindly advice me to proceed further.

      • January 28, 2013 at 10:45 am | #127

        Reply from the Author-@RajeshV- in terms of Sec.2A of the Gratuity Act 1972, you are deemed to have completed 5years of service. Please seek advice from a practicing labour Law consultant / advocate for further help.

  68. Murali
    January 4, 2013 at 6:08 pm | #128

    Sir, I have joined my previous organization on 16th May 2006 and resigned on 25th Nov, 2010. Am i eligible for gratuity? Please advise.

    • January 11, 2013 at 8:48 am | #129

      @Murali- An employee who worked for 4 years and 240 days in the fifth year is eligible for gratuity since he is deemed to have worked for full year in terms of the definition of “continuous service” under Sec.2-A of the Payment of Gratuity Act 1972. From the dates given by you, the period comes to 4 years & 160 days.

  69. AMOL D.PAGERE
    January 2, 2013 at 12:23 pm | #130

    SIR, I HAVE JOINED THE ORGANIZATION ON 04/02/2008 AND RESIGNED ON 06/12/2012 AND HAVE ONE MONTHS NOTICE PERIOD, AM I ELIGIBLE FOR GRATUITY.

    • January 11, 2013 at 8:50 am | #131

      @Amol – An employee who worked for 4 years and 240 days in the fifth year is eligible for gratuity since he is deemed to have worked for full year in terms of the definition of “continuous service” under Sec.2-A of the Payment of Gratuity Act 1972. as per the dates given by you, this condition is satisfied.

  70. October 24, 2012 at 12:35 am | #132

    I have left my organization on completing 4 yrs 6 months and 10 days.Am I eligible for gratuity?please advise.

    • October 27, 2012 at 10:52 am | #133

      @Suhani -An employee shall have to complete 5 years of continuous service to be eligible for gratuity in terms of Sec.4(1) of the Payment of gratuity Act 1972. However where an employee completes 4 years and 240 days (in the fifth year), he is deemed to have completed the full one year of service in the fifth year in terms of Sec.2-A of the Gratuity Act. In terms of the same Section, where an organisation functions only five days a week and the employee completes 190 days , he is deemed to have completed one year of service.

      • vinod kaushik
        March 21, 2013 at 11:18 am | #134

        Hi,
        Can you give some refrence in regard to this, as if some employee have completed 4 years and 8 months or means 240 days in the last year of the fifth year, and he has not completed 5 years, whether he is entitled fir Gratuity.

      • March 26, 2013 at 1:28 pm | #135

        @Vinod-Reply from the Author- You can refer to sec.4(1) and Sec.2-A of the Gratuity Act which in my view shall be read together to determine eligibility of an employee for gratuity.This is what that was held in Mettur Beardsell Ltd V.Regional Labour Commissioner, 1998 III LLN 414 (Mad HC). Please note that this reply is given only for your reference and guidance and is not a substitute for a legal opinion

  71. vinutha
    September 25, 2012 at 10:18 am | #136

    hi ,
    I am vinutha shetty i have joined on 01/01/2008 and my last date is 19/10/2012 can u please tell me weather i am eliglible for gratuaity.

    • September 28, 2012 at 10:52 am | #137

      @Vinutha, since you will be completing 4 years & 10 months by 19-10-12, you will be eligible for gratuity as you have deemed to be in continuous service for 5 years in terms of sec.4(1) of the Gratuity Act, 1972 –B.Saikumar

  72. Harendra
    June 25, 2012 at 3:49 pm | #138

    If any employee works for 4 yrs 8 months of continuous service, is eligible for gratuity or not?

    • July 7, 2012 at 9:13 am | #139

      @Harendra – Reply from the Author Mr. Saikumar -An employee who worked for 4 years and 240 days (8 months) in the fifth year is eligible for gratuity since he is deemed to have worked for full year in terms of the definition of “continuous service” under Sec.2-A of the Payment of Gratuity Act 1972

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