Suppose the employee is on the company's rolls till the date of resignation. In that case, the total period from the date of joining to the date of leaving will be considered for service to calculate gratuity; if any break is between them, the break period will not be considered for service for the calculation of gratuity. Once you have completed five years of continuous service in the company (without any break in service), you are eligible for gratuity.
Gratuity Calculation:
Last Salary drawn (PF deductable salary, Basic+DA+sp.allowance)/26 days *15 days ( for every completed year of service, 15 days of salary will be calculated as gratuity,and if the service is more than six months then one year will be added in service)* no of years of service (after 5 years of continuous service)
From India, Bengaluru
Gratuity Calculation:
Last Salary drawn (PF deductable salary, Basic+DA+sp.allowance)/26 days *15 days ( for every completed year of service, 15 days of salary will be calculated as gratuity,and if the service is more than six months then one year will be added in service)* no of years of service (after 5 years of continuous service)
From India, Bengaluru
Hi,
As per Section 2A of the Gratuity Act, in the event the employee is absent from the duty due to sickness, accident, leave or absence from duty without leave, he/she would be entitled to the benefit of gratuity unless the employer has passed an order treating such absence without leave as a break in service in accordance with the Standing Orders of Employment applicable to the employee. Also if an employee goes on a long leave (sabbatical) with the consent of the employer and resumes work after completion of the period of leave, he or she would be deemed to be in ‘continuous service’ for the purpose of payment of gratuity.
From India, Madras
951As per Section 2A of the Gratuity Act, in the event the employee is absent from the duty due to sickness, accident, leave or absence from duty without leave, he/she would be entitled to the benefit of gratuity unless the employer has passed an order treating such absence without leave as a break in service in accordance with the Standing Orders of Employment applicable to the employee. Also if an employee goes on a long leave (sabbatical) with the consent of the employer and resumes work after completion of the period of leave, he or she would be deemed to be in ‘continuous service’ for the purpose of payment of gratuity.
From India, Madras
Community Support and Knowledge-base on business, career and organisational prospects and issues - Register and Log In to CiteHR and post your query, download formats and be part of a fostered community of professionals.
Gratuity Eligibility.pdf
Gratuity eligibility for less than 5 yrs. (4yrs.240days). docx