Gratuity Rule: Most people know that gratuity is given if you work continuously for 5 years in an organization. But if you do a private job, then you should know that gratuity is given even for less than 5 years of work.
Gratuity Rule: Some people leave the job without thinking, then they regret later. If you are also working in an organization for a long time, then keep some things in mind before switching jobs. Especially, take steps to change the job only after gathering information about gratuity.
If you miss gratuity for a few months, then my advice would be not to be in a hurry to change the job. You will be benefited by changing the job by taking advantage of gratuity, anyway, gratuity is discussed the most in the salaried class. Most people know that an employee gets gratuity if he works continuously for 5 years in an institution. But if you do a private job, then you should know that gratuity is also given for less than 5 years of job. There are some special rules for this. If you have any questions related to gratuity in your mind, then you will find its answer below.
Question- What is Gratuity?
Answer- Gratuity is given by the company to its employees. In a way, the company expresses gratitude to the employee in return for continuous service.
Question- Are all private employees entitled to gratuity?
Answer- The Payment and Gratuity Act applies to all factories, mines, oil fields, ports and railways in the country. Along with this, employees of shops and companies that employ more than 10 people also get the benefit of gratuity.
Question- After how many years of work do we get gratuity?
Answer- Generally, employees working continuously for 5 years in any institution become eligible for gratuity. But in some cases, the benefit of gratuity is available even for less than 5 years of service. ‘Continuous work’ has been clearly defined in section-2A of the Gratuity Act. According to this, many employees can get the benefit of gratuity even if they do not work for the full 5 years.
Question- Do we get the benefit of gratuity before 5 years?
Answer- According to section-2A of the Gratuity Act, if the employees working in underground mines complete 4 years and 190 days continuously with their employer, then they get the benefit of gratuity. On the other hand, employees working in other organizations become eligible for gratuity after working for 4 years 240 days (ie 4 years 8 months).
Question- Does notice period also count in gratuity?
Answer- Yes, many people are confused about whether notice period is counted in gratuity calculation or not? The rule clearly states that notice period is counted in ‘continuous service’, so notice period is added to gratuity.
Question- How is the amount calculated in gratuity?
Answer- It is a very easy process, you can calculate your gratuity yourself.
Total gratuity amount = (last salary) x (15/26) x (number of years worked in the company).
Understand with an example: – Suppose you have worked in the same company for 7 years continuously. If the last salary is Rs 35000 (including basic salary and dearness allowance), then the calculation will be something like this-
(35000) x (15/26) x (7)= Rs 1,41,346. An employee can get a maximum gratuity of Rs 20 lakh. Online calculator is also available, you can check it yourself.
It is worth noting that according to the rules till now, for gratuity, it is necessary for the employee to work continuously for 5 years in a single company. However, the central government is considering reducing it to 3 years. If this happens, employees working in the private sector will benefit on a large scale.
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