Formula to Calculate Gratuity
Basic Salary*15*No. Of Years/26
15- As per act we have to pay 15 days salary for each completed
year to eligible employees
No. of years- 6month or above treat as 1 year for eg 7 year 7 month will
be treated as 8 years.
26 - Avg. working days in a month
For any clarification plz contact-

From India , Delhi
Dear Vishal,
This is Bharti working in Kindergarten school. i was appointed on 4/07/1988 i resigned from my job on 18/06/2008 with my 3 months notice which completed on 17/09/08. i waited for my gratuity till dated but my management refused to pay saying if i resigned from my job i resigned from my incentives. i resigned along with 3 collegues of mine all of us working for kindergaten pvt section. amongst us only 1 got gratuity on humanitarian grounds.. our school collect funds Rs. 1000/- from new admissions in kindergarten towards teachers gratuity fund. for which the recipt is issued to each child seeking admission. (i dont have recipt since im not in school any more) but school will have the duplicate for sure. 2 others are not getting gratuity saying they'e not completed 10 yrs of service. (completed 8Yrs). for me theres no excuse not to give but.. now only reason they give is that they dont want to give gratuity as theres is a pvt institute... can you explain how do i get my gratuity... more over if u could pl. reply on i'll be obliged as after posting here i cant find my own post since im new to this forum.. i'll be obliged .. pl. help me...

From India , Mumbai
Interest payment on delayed Gratuity was not mentioned in the above content.

The interest Rate to be applied on delayed payment of gratuity is 10%.

Employees who do not receive their gratuity within 30 days (from the date on which it becomes payable) are entitled to get the money along with simple interest from the due date to the date of actual payment, the Madras High Court Bench here has said.

Dismissing a writ petition filed by Arumuganeri Salt Workers' Cooperative Production and Sale Society in Tuticorin district, Justice K. Chandru said that the 30-day time frame would begin from the due date and not from the date of a positive order passed by the controlling authority under the Payment of Gratuity Act. The judge directed the petitioner society to pay interest at the rate of 10 per cent to one of its former employees who had resigned his job in June, 2003, without driving him further to any other forum. He held that that the appellate authority under the Act had rightly ordered payment of interest from 2003. Initially, A. Rajan, who was employed in the society on a daily-wage basis for six years, had filed an application before the controlling authority.

It was allowed with a direction to the society to pay the gratuity amount of Rs.9,692 within 30 days failing which it must be paid along with interest. Subsequently, the employee filed an appeal claiming that he was paid only the gratuity amount.

Allowing his appeal, the Appellate authority ordered to pay interest at the rate of 10 per cent from the date on which the gratuity became due till the date on which it was paid. The society had filed the present writ petition contending that it paid the amount within 30 days of the order passed by the controlling authority and hence it was not obliged to pay interest. “

Source: 17th Sep 2010 – The Hindu

If you are knowledgeable about any fact, resource or experience related to this topic - please add your views using the reply box below. For articles and copyrighted material please only cite the original source link. Each contribution will make this page a resource useful for everyone.

Please Login To Add Reply

About Us Advertise Contact Us
Privacy Policy Disclaimer Terms Of Service

All rights reserved @ 2021 Cite.Co™

All Material Copyright And Trademarks Posted Held By Respective Owners.
Panel Selection For Threads Are Automated - Members Notified Via CiteMailer Server