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Payment of Gratuity Act, 1972 provides for payment of gratuity @ 15 days' wages for every completed year of service or part thereof, in excess of seven months
• Maximum amount of gratuity payable under the Act has been raised from 3.5 lacs to 10 lacs recently. An amendment has been introduced n the parliament in this regard.
• No wage ceiling for coverage under the Act
Applicability
1.Every factory (as defined in Factories Act), mine, oilfield, plantation, port and railway.
2. Every shop or establishment to which Shops & Establishment Act of a State applies in which 10 or more persons are employed at any time during the year end.
3.Any establishment employing 10 or more persons as may be notified by the Central Government.
4.Once Act applies, it continues to apply even if employment strength falls below 10.
Calculation of Gratuity
Gratuity = Monthly Salary x 15 days x No. of yrs. of service/26
I have worked from 03-11-2006 to 09-30-2011 in my previous company. All of a sudden our process is take over by other company and we were revlieved yesterday. I must join the other company on monday. I am short of 3 days to get gratuity. Can i still be eligible. Does maternity leave also included in it as i have availed 4 months of leave in the year 2008 from aug to nov. Kindly clarify.
I have worked from 03-11-2006 ... See Aruna's complete reply
It has to decide from your new management.Because,after all of a sudden your process taken over by another company.They should decide it about your experience continue from old or else it is started now onward.