QUERY
Dear Experts,
Need your help to understand better about my gratuity eligibility. I worked for an private organization for 5 yrs 8 months. I believe monthly 4.8% of Basic pay goes towards Gratuity and its applicable if an employee departs from XYZ company after 5 yrs.
During my tenure of 5 yr 8 mos , I had worked 1 yrs 8 months in different geography (outside India) for the same company and as per my company policy I will not be paid gratuity for that tenure. After 5 yr 8 mos of overall service will I still be eligible for gratuity pay. Is it depends on individual company or does the Gratuity Act cover these aspects.
Thanks for your detailed response and clarification.
Thanks
Mohan

25th February 2011 From India , Bangalore

Dear Mohan,
Payment of Gratuity act clearly state that "Gratuity is to be paid to any employee only he provides service for a minimum time of five years at a stretch with his employer in company". Eventhough you are working in a same concern for 4+1.8 years, you got all others like PF, ESI etc., If you are eligible as above you will get the gratuity as below:
The Gratuity calculation is done as per the last average remuneration drawn and time in years served by an employee.
For the Gratuity calculation the gratuity calculation formula is
1. basic/26 x 15 days x number of years of service
OR
2. BASIC + DA (Last Pay drawn) X 15 /26 X No. OF YEARS WORKS
Best wishes by,
P. Paraman.
Manager - Admn.,
22nd March 2011 From India , Selam
Dear Paraman,
Thanks for your clarification. Though I served for 5 yrs 8 mos with same company, only for the period I was in India Gratuity will be contributed and once I left to different Geo , Gratuity was discontinued and will start fresh once I returned back. Based on theses points, my company say Gratuity will not be Paid.I felt shattered ... though I served the company for almost 6 years and Gratuity will not be paid in my case.
Is this normal practice in some IT service company ? What will happen to this Gratuity amount ... will the employers take it back. I feel this is not completely government controlled and employers have their own policies to benefit them.
Thanks
Mohan
11th April 2011 From India , Bangalore
Dear Paraman,
I have two questions
Gratuity will not be paid if employee not served for 5 Years?
1. Then what will happen that amount deduced for gratuity? Is this goes to Govt treasury?
2.If the emplyoee working for company for 3 years and left to others, then come back to join the company again and serviced more than 3.5 years.Is that emplyoee eligible for gratuity?
Regards,
Senthilkumar
26th April 2011 From India ,
Dear Mohan,
your formula is right. but some companies calculation basic/25*15*no.years. it is right??????
For the Gratuity calculation the gratuity calculation formula is
1. basic/26 x 15 days x number of years of service
OR
2. BASIC + DA (Last Pay drawn) X 15 /26 X No. OF YEARS WORKS
raviraj
17th June 2011 From India , Visakhapatnam
Dear Experts,
Gratuity will not be paid if employee not served for 5 Years?
1. Then what will happen that amount deduced for gratuity? Is this goes to Govt treasury?
2.If the emplyoee working for company for 3 years and left to others, then come back to join the company again and serviced more than 3.5 years.Is that emplyoee eligible for gratuity?
Jayakrishnan
4th August 2011 From India , Madras
Mera naam Vivek Sharma hai. Maine 2009 se 2015 March tak ek security company mein kam kiya hai. Aur March 2015 mein hi resign ker diya.per company ne mera PF dec2014 se katna shuru kiya tha. Mujhe mere full and final payment Ke dauran gratuity bhi nahi di gai. Kya mein is ke liye labour court ki madad le sakte hun. Pls. Advice me.
28th June 2015 From India, New Delhi
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