Request for Retirement Function / Gratuity / Letter Author: Information Services Last modified. Request for Retirement Function / Gratuity / Letter. The company claims that as per Payment of Gratuity Act and Rules. A formal request letter to the company requested to pay the gratuity.
Dear Avijit In similar question a thread shared by one of our senior moderator Mr.Madhu T.K wrote the following,as I am not able to share it in link, so copied for your knowledge,hope it will resolve ur issue. Gratuity is an amount payable by the employer while an employee leaves the establishment after serving for at least five years. Therefore, it cannot be claimed while you are in service. On your leaving if the employer does not pay it you can recover it with interest by giving a request to the Labour authorities. Gratuity will be equal to 15 days salary at the time of leaving the company for every completed year of service. Any fraction of a year for more than six months shall be taken as one year and less than six months shall be ignored while calculating the amount of gratuity. That means if you have worked for six years, six months and a day, you will get gratuity for seven years.
If your salary (Basic + DA) at the time of leaving is Rs 26000 then your gratuity will be Rs 105000 calculated as 26000 /26 days (to get daily salary) X 15 days X 7 (years of service) Payment of gratuity is mandatory and it should be paid to the employee who is entitled to get it even if the employee has not claimed it. That means it is the responsibility of the employer to trace the employee and pay him.[/B] regards Mitali 21st January 2012 From India, New Delhi. Dear Avijit, You are eligible for gratuity.
You can send a letter to your company(Through registered post) and next step you can go to the Inspector of labour and give a complaint. Dear Avijit On receipt of your application for gratuity, the employer shall inform you about the payment or non payment of gratuity within 15 days of receipt of your application as per the Act and thereafter shall arrange to pay the same within 30 days from the date it becomes payable. Now you can send a final letter calling up on them to pay your gratuity within 7 days(the time may bestipulated by you), failing which you will be free to pursue the remedies availbale to you under the Act.If they still do not respond to your letter, you can file an application before the Controlling Authority under the gratuity Act who is normally the Asst Commissioner of Labour (State). B.Saikumar HR & labour Law Consultant Chipinbiz Consultancy Pvt.ltd Mumbai 04 23rd January 2012 From India, Mumbai. Dear MMRAO, Yes it is Basic + DA only.
No other allowances like HRA, TA, Spl Allowance, Medical Allowance will be taken. As per Gratuity act it is mentioned cleared as Basic wages only.
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Also when a company calculates the TCTC the gratuity amount is derived from Basic salary only. Gratuity is calculated as below (Last Drawn Basic+DA) / 26(No. Of days in the month)*15(Half of the month)* N(No. Of years) For every completed year of service or part thereof in excess of six months, the employer shall pay gratuity to an employee at the rate of fifteen days' wages based on the rate of wages last drawn by the employee concerned: In case of a monthly rated employee, the fifteen days' wages shall be calculated by dividing the monthly rate of wages last drawn by him by twenty-six and multiplying quotient by fifteen. 24th January 2012 From India, Mumbai.
Dear Mr.Shenbagarajan, Thank you so much for your clear cut explanation. Now I understood. Further to extend my doubt, I would like to know the following: 1. Our Company established on 19-MAR-1998. Many members worked earlier for five years and resigned and left the Company. I have proposed being HR in my company that payment of gratuity shall be made to the employees.
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Prepared a Circular order also to that effect. Still it is under approval process with the CMD. Supposing if it is approved, is it our duty to consider earlier cases who had put in 5 years of service?
For example if an employee served in a Company for 4 years 6 months 10 days. Is he eligible for Gratuity? I hope I have raised too many questions in one thread.
Sorry to bother you. Yours truly, MMRAO.
25th January 2012 From India, Hyderabad.