I worked for a Social service organization from 1/9/92 to 31/7/98 I was not aware of gratuity rules.My salary was too low from 92 and slowly revised on 98. Can i claim gratuity. The organization exist,but staff changed.No deafness allowance. Can iclaim if possible.What s latest amendment and how to proceed

Ans: The revised amount is for tax exemption. The gratuity is calculated based on your last drawn basic salary

Ans: Hi,
I understand your concern. You have not mentioned the profession and the industry you have been into. The Act was amended in 2007. However, the amendment in 2007 was mainly to extend the benefits of gratuity to teachers.

Ans: Dear Mr.Sanjay

You have to work with the company to get what you want...ball is in their court...keep your ego aside...don't lose your cool when you talk to them...Be patient.

As you have worked with the company you know who is the key decision maker and influencer. Work with the influencer.

As a back up take legal opinion but don't threaten them with any legal actions.

Keep pursuing in a patient way. It may take some time. Don't lose hope.



All the best.

Ans: I have give you a brief explanation about how gratuity is calculated.
Sure this will assist you in understanding the methodologies.

The amount of gratuity for employees whose employer is covered under the Gratuity Act can be calculated using the formula:
Gratuity = n*b*15 / 26

Where n = Tenure of service completed in the company
b = Last drawn basic salary + dearness allowance

For example, you have worked with the XYZ company for a period of 15 years. Your last drawn basic salary along with dearness allowance was Rs 30,000. Hence:

The amount of gratuity = 15 * 30,000 * 15 / 26 = Rs 2,59,615

Two points must be noted here:

As per the Gratuity Act, the amount of gratuity cannot be more than Rs 20 lakh. Any excesses would be treated as ex-gratia.

If the number of years you have worked in the last year of employment is more than six months, then it will be rounded to the nearest figure. Suppose your tenure of service is 16 years 7 months, then you receive the gratuity for 17 years. Otherwise, its for 16 years if it happens to be 16 years 4 months.
In your case 5 years 5 months hence 5 year's as you are below the half yearly for upper round up.


For employees whose employer is not covered under the Gratuity Act, the gratuity amount would be calculated as per the half-month salary on each completed year of service.
The formula is: (15 * Your last drawn salary * the working tenure) / 30.

For example, you have a basic salary of Rs 30,000. You have rendered continuous service of 7 years and the employer is not covered under the Gratuity Act.

Gratuity Amount = (15 * 30,000 * 7) / 30 = Rs 1,05,000.

In regard to your leave,please get a clarification from your HR, as to why they have deducted 30 days of earned leave.