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Gratuity Formula – Rules, Limit, Eligibility & Calculation 2020

By:MoneyChai Retirement Last Updated: 25 Jan, 2020

How to calculate gratuity amount using gratuity formula in 2020? The latest amendment bill increased the new limit of gratuity to Rs. 20 lakhs . This article covers

  1. Gratuity Formula – Last drawn salary X  years of service X 15/26.
  2. Gratuity New Limit – Rs. 20 Lakhs
  3. Gratuity Eligibility – 5 Years of Services
  4. Rules – Gratuity is Mandatory
  5. Gratuity Calculations

What is gratuity in salary slip in India?

Gratuity is a sum of money paid by an employer to the employee. Nowadays, gratuity is paid by both the public sector and private sector employers. Generally, gratuity is included in your salary as a part of the cost to the company (CTC) when the employee joins the company. He is eligible to claim gratuity only after the expiry of a particular amount of time or on retirement, whichever is earlier.

The gratuity in most cases forms a part of the CTC to the company. This does not form a part of the salary slip.

What is percentage of gratuity in CTC?

Gratuity percentage is a not a part of CTC, it is a part of basic salary.

What percentage of basic salary is gratuity?

Gratuity is 4.81 percentage of basic salary.

Is Gratuity same as tip?

No, gratuity is not same as tip. Gratuity is the monetary benefit given to the employees for being associated with the company for long term.

Gratuity Formula Rules Limit Eligibility Calculation

Gratuity Rules 2020

Let us understand Gratuity rules for 2020 with the help of FAQs

Is gratuity mandatory? Do companies have to pay gratuity?

Yes, gratuity is mandatory in India for companies having ten or more employees in the twelve preceding months.  This is mandatory for both public and private limited companies. Under the Payment of Gratuity Act, the employee can demand and receive gratuity as a part of his or her terms of employment.

How many years to be completed for gratuity?

Gratuity on active employment, VRS or voluntary retirement scheme is applicable only if the employee has completed a minimum of five years. The same provision applies for termination also.

20 lakhs gratuity Limit- Latest News- Gratuity Amendment Notification 2019

As per the latest notification, The maximum amount limit of gratuity has recently increased by the Parliament under the Payment of Gratuity Act to 20 lakhs from the previous amount of 10 lakhs. The latest amendment news came in March 2018.

Gratuity Eligibility 2020

Who is eligible for gratuity in 2020? Is gratuity available for all employees?

In order to be eligible for gratuity, the number of employees in the company has to be more than 10. Every employee should also have completed a minimum of 5 years of uninterrupted service in the company. The Act does not distinguish between temporary staff and permanent staff for the calculation of gratuity. As long as temporary staff are called employees, they will also be eligible for receiving benefits under the Payment of Gratuity Act 1972.  As per the Act, uninterrupted service is continuous employment. Any disruptions in employment due to the following reasons will not disadvantage the employee and he will still be deemed to be in uninterrupted service – disruptions due to sickness, accident, allowed leave, layoff, strikes, lockouts etc.

What happens if the employee is not able to complete the five years of service ?

In case the employee is unable to complete the five years of service due to death or disablement, he will be awarded gratuity as if he had originally completed five years of service. That is, he will be deemed to have completed five years of service for the purpose of the Act. But the amount of gratuity will be on the actual number of years completed and not five years.

In all other cases, the employee will not be eligible for receiving gratuity.

Are there any nuances for calculating the five years? Is it mandatory the employee has to work every day in a year ?

According to the Payment of Gratuity Act, the employee should have at least worked for 190 days out of 365 days in case he works below the ground. All kinds of mining activities come under this rule.

In cases where the employee works above the ground, he should have at least worked for 240 days out of 365 days.

Therefore, the employee need not work every day in a year to get the benefits of gratuity

Gratuity Formula 2020

How is gratuity calculated?

Gratuity formula, for calculation of gratuity,depends on the period of employment, last drawn salary, and number of completed years of service.

Gratuity Formula  – Covered under Payment of Gratuity Act 1972

The Gratuity formula for employees in 2020, covered under the act is

Last drawn salary (basic salary plus dearness allowance) X number of completed years of service X 15/26.

What is 15/26 in Gratuity calculation?

Total No of working Days in a Month -26 Days

Number of days employee has worked- 15 Days

Gratuity Formula  – Not covered under Payment of Gratuity Act 1972

The Gratuity formula for employees in 2020, not covered under the act  is

Gratuity = Average salary X ½  X No. of years of service

where average salary is basic plus DA plus commission.

Gratuity Calculation 2020 – Example

Mr A works for 10 years in ABC Ltd. ABC Ltd falls under the ambit of the Payment of Gratuity Act. His last received salary is 26000 Rs per month(basic plus DA). How do we determine the amount of gratuity payable to Mr A?

In order to find out the amount, we should first understand the formula for calculation of gratuity.

Gratuity = Last drawn salary * 15/26 * No. of completed years of service.

In this case, the gratuity amount will be as Rs 26000 x 15/26 x 10 years=  Rs.150000.

How to calculate gratuity in death case?

In the case of death of an employee, even if the employee works for less than the five years, he will be eligible to get gratuity for the number of years of completed service.

Gratuity Taxation

Is gratuity taxable?

Let us check if the gratuity is taxable-

For companies covered under the Payment of Gratuity Act,  the least of the following is exempt from tax –

  • Last salary (basic + DA)* number of years of employment* 15/26;
  • Rs. 20,00,000
  • Gratuity Actually received

For employees not covered under the Payment of Gratuity Act, the least of the following is exempt from tax –

  • Last 10 month’s average salary (basic + DA + commission)* number of years of employment* 1/2;
  • Rs. 20,00,000
  • Gratuity actually received

Gratuity limit exemption for Cenral govt employees and State govt employee

Any gratuity paid by the government to its employees is fully exempt from tax, be it a central govt employee or state govt employee

  • Example One – Mr A works for the State Government. He has worked for the last 15 years, and decides to retire from his service at the end of the 15th The amount of gratuity paid to him is Rs. 35 lakhs. Determine the amount of tax payable by Mr. A.

Since Mr A is a government employee, any gratuity amount would be fully exempt from tax. Therefore, Mr A does not have any tax liability on his gratuity even though it has exceeded the mandated amount of 20 lakhs.

How to calculate gratuity limit exemption for private sector employees?
  • Example Two – Let us now assume Mr A works for a private sector company, and not the government. He has worked for the last 15 years.Then he decides to retire from his service at the end of the 15th year.The amount of gratuity paid to him is Rs. 35 lakhs. Determine the amount of tax payable by Mr. A.

In this scenario, since Mr A does not work for the government, gratuity above Rs. 20 lakhs will be taxable. The amount specified  is Rs. 20 lakhs or 15/26 of the last drawn salary multiplied by the number of years of completed service, whichever is lower. Assuming 20 lakhs is lower, Mr A is liable to pay tax on the excess amount, which is 15 lakhs.

Is both central and state government employees’ gratuity exempt from tax?

Yes, the exemption is valid for both Central and State governments.

Gratuity forfeiture by the employer

In case an employee is

  • Terminated for any act due to his negligence or willful omission,If this act results in any loss or destruction of property, the employer can forfeit the employee’s gratuity.

In case Mr A, due to his negligence, causes a fire in the factory. The company terminates him after 8 years of service.He will not be eligible for gratuity if the employer chooses to forfeit the same.

What If an employee leaves the company after 4 years and 8 months, will he be eligible for a gratuity?
Yes, the employee will be eligible for gratuity. The Madras High Court Judgement refers to the 190/240 day rule.You can read the judgement here:
Gratuity Eligibility – Madras High Court Judgement
What is your view on gratuity formula, limits and calculations for 2020? Also feel free to share the article with your family and friends.
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Filed Under: Retirement

MoneyChai

Hi, I am Ajay Pruthi, an alumnus of NIT Jalandhar and K.J. Somaiya Institute of Management Studies. I have over 10 years of experience in the field of insurance and have worked with top two private insurance players in the country. I am a Certified Financial Planner and currently working as a Paraplanner with Mr. Melvin Joseph, founder of Finvin Financial Planners. If you liked my blog and want to discuss further on comprehensive fee only financial planning, feel free to get in touch by visiting Finvin Financial Planners.

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Reader Interactions

Comments

  1. RENU JOSHWA says

    February 7, 2019 at 1:55 pm

    I have joined company on August 2015 and till now I am working for the same company. Will I be eligible for gratuity by March / April 2019.

    Reply
    • MoneyChai says

      February 7, 2019 at 1:58 pm

      Hi Renu

      As per rules, you would be eligible after 5 years. By March/April 2019, you will complete around 4 years.

      Reply
      • Lorraine says

        July 2, 2019 at 2:15 pm

        I have been working for he last 5 years in this company it is a foreign company with 4 staff am i eligible for gratuity??

        Reply
  2. Sri says

    March 7, 2019 at 2:59 pm

    Hi ,
    I have joined on August18 2014 and my last day would be May 14 2019. Am I been eligible for gratuity ?

    Reply
  3. Monu Gautam says

    March 8, 2019 at 11:10 am

    I have joined company on September 2014 and till now I am working for the same company. Will I be eligible for gratuity by March / April 2019.

    Reply
  4. Tanveer ahmed says

    March 9, 2019 at 4:32 pm

    I m joined company 27 january 2015 to untill now. I m working same company. Can i get my gratuity as per UAE law

    Reply
    • MoneyChai says

      March 9, 2019 at 8:10 pm

      Hi Tanveer

      I am not aware about UAE law. It is better to ask your company.

      Reply
  5. Vikas Thakur says

    March 15, 2019 at 8:34 pm

    How much gratuity I will receive, I am in Army and my basic pay is 44000/- and DA is 4657 and my total service is 20 years

    Reply
  6. CHANDRASEKARAN says

    March 23, 2019 at 3:42 pm

    sir Iam a cooperative urban bank employee.ple. clear my dobut. I Was worked in my bank as cashier from18-02-1991 to 31-05-1998. I regin.my cashier post on31-05-1998 and joint secretarey post on 01-06-1998.now I WILL REDIER ON 31-03-2019.what is my total sevice year.

    Reply
    • Abdul Majeed says

      September 17, 2020 at 3:03 pm

      if an employee complete his service which is 39years 6 months and his last pay was 45000 including DA what is his gratuity amount

      Reply
      • Poonam Jha says

        December 2, 2020 at 4:45 pm

        Your Gratuity amount is 1012500.

        Reply
  7. CHANDRASEKARAN says

    March 23, 2019 at 3:49 pm

    sir I am a cooperative urban bank employee.ple. clear my dobut. I Was worked in my bank as cashier from18-02-1991 to 31-05-1998. I regin.my cashier post on31-05-1998 and joint secretarey post on 01-06-1998. my retierment will comes on 31-03-2019.what is my total sevice year.

    Reply
  8. Sai says

    March 26, 2019 at 7:41 pm

    Hi ,

    I worked in Software company which have 5 working days per week, I joined in the company on June 11,2014 and my last day was 14 March,2019. Could you please confirm whether I am eligible for gratuity.

    Thanks in advance

    Reply
  9. sangeetha mahalingam says

    April 23, 2019 at 4:02 pm

    Hi,

    I worked in genuis consultants company ( Clent of DBOI Gobal Service Pvt ltd, BLR). I joined in the company on Nov15, 2015 and my update working(2019). Could you please confirm whether I am eligible for gratuity.

    Thanks in advance

    Reply
    • MoneyChai says

      April 23, 2019 at 4:30 pm

      Hi Sangeetha

      As per the rules, you would be eligible for gratuity after 5 years of joining, which would be be 2020.

      Reply
  10. Javaid Ahmad says

    May 7, 2019 at 8:10 pm

    I joined an institution on 7 March 2009 till 17 April 2019 am I eligible for gratuity

    Reply
    • MoneyChai says

      May 7, 2019 at 8:36 pm

      Yes, as per the rules, you are eligible for gratuity.

      Reply
  11. Kogga n says

    May 10, 2019 at 2:21 pm

    My wife veena worked in nationalised bank she recently applied for volantary retirement she completed actualy 32years7months.she has taken total eight months five days as LOP on medical ground .out of eight months Lop Except for 91days all other days LOP leave not affected for her senority and increment.only 91days LOP affected her senority and postponed her incriment by 91 days..now my question is my wifes service while claiming graduity no of completed service will be reduced by 8 months 5days or only by 91days. .pl guide .is she eligible for graduity benefits for her entire period of service 32 years7months ? All her LOP is sanctioned by her higher authority and head office. …

    Reply
  12. Juliet says

    May 11, 2019 at 6:32 am

    I have joined in a private institutions in June2012 and still am working .
    in between from from may 2015 to Nov2015 I was in maternity leave.
    Am I eligible for graduvity?

    Reply
    • MoneyChai says

      May 30, 2019 at 6:05 pm

      Yes Juliet, You are eligible for gratuity.

      Reply
  13. Rahul Shah says

    May 16, 2019 at 10:49 am

    I have completed 4.3 Year of my service.My attendance in company is 99.5 Percent.So,According to law of 240 Days,am i eligible for graduity?

    Reply
    • MoneyChai says

      May 30, 2019 at 4:56 pm

      No, It has to be minimum of 4 Years 8 months.

      Reply
  14. Ranjeet says

    June 19, 2019 at 11:12 am

    Hi,
    I have joined in ltd company and they are not deducted any PF amt from salary. And not contributing any amt in PF.
    But deducting Rs.1666 as benefits of Gratuity from salary every month.

    Pls snuggest.. is this right?

    Reply
    • MoneyChai says

      June 19, 2019 at 8:55 pm

      Some companies do deduct.

      Reply
      • saeed says

        August 27, 2019 at 4:50 pm

        Hi i am working in private company from the period of 8 Dec 2014 to 26 Aug 2019 the total period is 4 Years 8 Months 18 Days.

        Could you please confirm me i am eligible for gratuity.

        Reply
        • MoneyChai says

          August 27, 2019 at 8:23 pm

          Yes Saeed, You would be eligible for gratuity.

          Reply
  15. Suraj Bhekat says

    June 20, 2019 at 10:22 am

    Hi,

    I worked in genuis consultants company ( Clent of Lupin Pvt ltd). I joined in the company on Sep 1, 2014 and my update working(30 Jun 2019). Could you please confirm whether I am eligible for gratuity.

    Reply
    • MoneyChai says

      June 20, 2019 at 8:28 pm

      Yes Suraj, you should be eligible for gratuity.

      Reply
  16. Vaishali Moon says

    June 24, 2019 at 6:31 pm

    Will I 4 years and 6 months completion of service eligible for Gratuity

    Reply
    • Vaishali Moon says

      June 24, 2019 at 6:32 pm

      4 years 6 months ( Dec 2014 to June 2019)

      Reply
    • MoneyChai says

      June 25, 2019 at 10:13 am

      Hi Vaishali

      4 Years 8 months is the minimum criteria.

      Reply
      • divya says

        June 28, 2019 at 11:11 am

        Hi am currently working in a company from past 4 years and 10 months am i eligible for gratuity,since i will be quiting my job next month

        Reply
        • MoneyChai says

          June 28, 2019 at 11:54 am

          Hi Diyva

          Yes, you are eligible for the gratuity.

          Reply
  17. Sarika says

    July 3, 2019 at 5:01 pm

    Hy..
    I am working in a co op bank, i will be completing 5 years of working in september 2019. Bt during this period, i was on without pay maternity leave atleast fr 3/4 months. I am going to quit my job in september Or october 2019. So as per the gratuity rule of 240 days of working, will i be eligible for payment of gratuity?
    N if possible for you then will u please tell me in which month I have to resign to get the benefit of gratuity.. Please. Looking forward to ur reply. TIA..

    Reply
    • MoneyChai says

      July 4, 2019 at 4:41 pm

      Hi Sarika

      I am not sure, you need to confirm it with you HR as you had taken leave without pay.

      Reply
  18. pradeep kumar nath says

    July 13, 2019 at 7:54 am

    i,am join a brave security service agency through at Hdfc bank odisha 20-december-2014 and the security agency changed exit to 30- june-2019 now me already working same bank other security agency 1-july-2019 to continue can me eligible of gratuity

    Reply
    • MoneyChai says

      July 15, 2019 at 8:51 pm

      Hi Pradeep

      Since you are an employee of security agency, you will not be eligible for gratuity.

      Reply
  19. kamal manocha says

    July 24, 2019 at 10:53 am

    Hi,
    I worked in Manufacture company ( Bando india pvt ltd ). I joined in the company on Nov 1, 2014 and my update working(31 July 2019). Could you please confirm whether I am eligible for gratuity.

    Thanks

    Reply
    • MoneyChai says

      July 24, 2019 at 2:56 pm

      Hi Kamal

      Yes, you should be eligible for gratuity since you will complete 4 years and 9 months in your job.

      Reply
  20. Robi Nayak says

    July 26, 2019 at 1:07 pm

    Respected team
    I have joined in a private limited company on 1st July 2013 & leave the company on 13th June 2019 due to some personal emergency. I do not provide any kind of notice period. So they are told me that as per company policy I am not eligible to get my last few days salary. Its very much okay for me. But could you please confirm whether I am eligible for gratuity or not. Because my previous employer told me that they’re not provided any kind of gratuity to me & there is nothing about any clause written in my offer / appointment letter. So please confirm me that could I eligible for gratuity & what are the process if my previous employer refuse to pay my gratuity.

    Reply
    • MoneyChai says

      July 26, 2019 at 1:22 pm

      Hi Robi

      If the employees in your previous company are more than 20. Then the employer need to pay the gratuity as you have completed 5 years, whether it is mentioned in your offer letter or not.

      Reply
  21. Manish Buddha says

    August 16, 2019 at 4:08 pm

    I will resign from a PSU owned by state govt in Feb 2020 due to health reasons. I joined as a permanent employee in Feb 1997. I am currently on leave for health reasons – HAPL – half average paid leave. For calculation purpose in gratuity, my basic plus da will be counted as full or only half as last drawn salary will be half in January 2020

    Reply
  22. suresh Arora says

    August 19, 2019 at 4:17 pm

    Dear Team,
    The company’s retirement age was 58 but I am still working (age 62) should gratuity will be paid for this period also(i.e from age 58-62). Please explain.

    Reply
    • MoneyChai says

      August 19, 2019 at 9:20 pm

      Hi Suresh

      Yes, it will be paid.

      Reply
  23. Mohd Imran says

    September 2, 2019 at 9:17 pm

    I had joined PROPRIETORAHIP FIRM IN APRIL 2015 AND AFTER 2 YEARS IN 2017 EMPLOYER OF THE COMPANY CONVERT HIS ALREADY CREATED PRIVATE LTD. CO IN 2016 CONVERT INTO LLP IN 2017 AND MOVE ALL EMPLOYEES IN THIS COMPANY. SO I CURRENTLY WORKING EMPLOYER LLP COMPANY LAST 2 YEARS 5 MONTHS.
    PLEASE SUGGEST ME IF I COMPLETE 4 YEAR 8 MONTHS THEN I ELIGIBLE FOR GRATUITY.

    Reply
  24. Nurul Kabir says

    September 19, 2019 at 11:03 am

    Hi, I worked in Manufacture company, Asst Manager ( HKD International ( CEPZ) Ltd. please kindly let me know, will gratuity get an officer of the company? Or just get workers?

    Reply
    • MoneyChai says

      September 19, 2019 at 4:03 pm

      Hi Nurul

      Everyone is eligible for gratuity.

      Reply
  25. Amit says

    September 25, 2019 at 8:49 am

    Hi,

    My service period is March,2014 to Dec,2018. Work was 5 days a week.

    Will i be eligible for Gratuity payment from my previous organization.

    Regards,
    Amit

    Reply
    • MoneyChai says

      September 25, 2019 at 9:19 pm

      Yes Amit, Ideally you should be eligible.

      Reply
  26. Rashi Bhatia says

    September 30, 2019 at 5:24 pm

    How? he has completed his tenure the his company before 5 years,he left the organization before 3 months as 5 years should be completed in 2019,March only.

    Reply
  27. Raja VP says

    October 2, 2019 at 7:26 am

    4.8 year work experience all india pvt company applicable any exception is there sir. Im working same organisation 4.8 years and i want to know my DA. In my payslip not mentioned any DEAR NESS Allowance. Where i can find the DA amount or any standard DA are following all pvt company?

    Reply
  28. Manisha Joshi says

    October 25, 2019 at 12:23 pm

    i am working in a private hospital since 24 yrs. this hospital is going to close down because of losses.
    will we get Gratuity? i have heard that if company is closing down then they have to give double the gratuity( in some other heading). what are the rules?

    Reply
  29. Janardan says

    December 15, 2019 at 2:51 am

    Payment of gratuity act 1972 and in CCS (pension) rule, 1972, no formula is given for calculating the gratuity. Units of central govt are calculating the gratuity using the formula 15/30 not using 15/26. Is it correct ?

    Reply
  30. Joy says

    December 21, 2019 at 12:13 pm

    My father have worked in government as class 2 officer,he has been given compolsory retirement as punishment,what are the benefits will be snatched away from us??

    Reply
    • MoneyChai says

      January 4, 2020 at 5:34 pm

      Hi Joy

      I am not sure about this.

      Reply
  31. Adarsh says

    January 3, 2020 at 1:10 am

    I have joined a company in December 2012 and left in 2015 then again I joined the same company in 2018 and currently working there. In Total, I have completed 5 years and 240 days. Am I eligible for gratuity.

    Reply
    • MoneyChai says

      January 4, 2020 at 5:30 pm

      Hi Adarsh

      It should be a continuous service of 5 years. You are not eligible for gratuity.

      Reply
  32. Abhinav Awasthi says

    January 14, 2020 at 3:55 pm

    I joined a company in July 2015 & now in Jan 2020 am I eligible for Gratuity.

    Reply
  33. samarnath roy says

    March 6, 2020 at 4:22 pm

    I joined a company in 2 May 2015, am I eligible for Gratuity after 4 May 2020?

    Reply
    • MoneyChai says

      March 8, 2020 at 11:36 pm

      Hi Samarath

      Yes, you would be eligible for gratuity.

      Reply
  34. Twinkle Nathani says

    March 10, 2020 at 10:57 pm

    I joined a company 1 August 2015. Am I eligible for the gratuity after 1st of April?

    Reply
  35. Richa says

    March 18, 2020 at 6:24 pm

    Hi , I work for an organisation from 4jan 2016 .. will work till Nov 2020. Am I eligible for gratuity?

    Reply
    • MoneyChai says

      April 4, 2020 at 9:47 pm

      Hi Richa

      Yes, you should be eligible.

      Reply
  36. Dolly says

    April 7, 2020 at 9:02 pm

    I did’nt get the point not covered under P.G act as on website of P.G its written
    Seasonal 7×last drawn÷26 × time
    Or pieace rate empolye what is acutly is not covered in under P.G act ? Please RepLy thankyou btwn its very helpful and wonderful post You are kind to share your knowledge with us Thankyou Good Luck Stay safe

    Reply
    • MoneyChai says

      April 9, 2020 at 10:09 am

      Hi Dolly

      You will have to confirm it from your employer.

      Reply
  37. Monica Thomas says

    May 14, 2020 at 6:12 am

    My dad worked as government aided lecturer fir 23years and expired recently. His basic pay is 147000/- and Da is 7000 what is the gratuity we get. What is the highest limit on gratuity. Kindly help me out .

    Reply
  38. A.Kafeel says

    August 19, 2020 at 8:26 pm

    Sir, I have to ask, for grtuity ,PF,ESI, deduction is must?

    Reply
  39. Mohammed says

    October 7, 2020 at 7:09 am

    I have join date 5-01-2017 and I will leaving the company on 10- 12_2020
    I am eligible for Gratuity?

    Reply
  40. ramesh pawar says

    January 5, 2021 at 8:39 am

    Hi,
    i joined an Pvt ltd company on 1 Nov 2010.
    But due to covid not joining office, then company given notice after i had resigned on Oct 2020 then I eligible for gratuity.

    Reply
    • MoneyChai says

      March 7, 2021 at 2:14 am

      Hi Ramesh

      Yes, you would be eligible for gratuity.

      Reply
  41. Sartaj Krishan Raina says

    January 15, 2021 at 5:16 pm

    I will be retiring from a PSU in January 2021, I am drawing salary of 1.25 lacs (Basic +DA) and have rendered a service of 35 years and 143 days. What will be by Gradutaty amount

    Reply
    • MoneyChai says

      March 7, 2021 at 2:12 am

      Hi Sartaj

      Please confirm it from your HR department.

      Reply
  42. Narshi Savjibhai Nakum says

    January 18, 2021 at 11:41 am

    I am working with M/s Bhaskar resources pvt Ltd. From 1.11.2018 to 6.02.2021.I will be eligible for the gratuity.?

    Reply
    • MoneyChai says

      March 7, 2021 at 2:12 am

      If you have completed 4 years and 240 days, you would be eligible for gratuity.

      Reply
  43. deepa says

    January 29, 2021 at 11:24 am

    Hi , I work for an organisation from 2 may 2016 .. will work till jan 2021. Am I eligible for gratuity?

    Reply
    • MoneyChai says

      March 7, 2021 at 2:11 am

      Hi Deepa

      If you have completed 4 years and 240 days, you would be eligible for gratuity.

      Reply
  44. Deepth says

    March 4, 2021 at 5:11 pm

    Hi I worked in an organisation from Jun -2016 to Feb -2021, which is 4.7 yrs, will I be eligible for gratuity? If yes please share the Govt act document.

    Reply
    • MoneyChai says

      March 7, 2021 at 2:05 am

      Hi Deepth

      Its 4 years and 240 days.

      Reply
  45. Kushal says

    March 18, 2021 at 12:10 pm

    I worked in my company about 15 years and one month and now I resigned from my service. My basic salary is 15000/- per month. How many amount can I get as per gratuity act?

    Reply
  46. Rupesh says

    August 8, 2021 at 4:12 pm

    Hi I’m working in pharma industry Last 4 year 10 months & 18 days so I’m eligible for graduaty or not

    Reply

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About Us

Hi,
I am Ajay Pruthi, an alumnus of NIT Jalandhar and K.J. Somaiya Institute of Management Studies. I have over 10 years of experience in the field of insurance and have worked with top two private insurance players in the country.

I am a Certified Financial Planner and currently working as a Paraplanner with Mr. Melvin Joseph, founder of Finvin Financial Planners.

If you liked my blog and want to discuss further on comprehensive fee only financial planning, feel free to get in touch by visiting Finvin Financial Planners.

 

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