CGHS – New Empanelled Hospitals

FR & SR Part III – Leave Rules

ESIC – Employees’ State Insurance (Central) Rules, 1950

Gratuity Amount Calculation

Employees, as defined here, are the ones hired on company payrolls. Trainees are not eligible and gratuity is paid on the basis of the employee’s basic plus dearness allowance if any.

How much can you get?

You become entitled to a gratuity on resignation or on retirement after five years or more of service. As per the Act, the gratuity amount is 15 days’ wages multiplied by the number of years put in by you. Here wage means your basic plus dearness allowance. Take the monthly salary drawn by you last (basic plus dearness allowance) on resignation or retirement and divide it by 26, assuming there are four Sundays in a month. This is your daily salary. Multiply this amount by 15 days and further with the number of years you have put into service.

For instance, if your average monthly salary is Rs 50,000, the gratuity payable to you after 10 years of service would be Rs 290,000. However your employer factors in another term: ‘uninterrupted service’. The term covers the service period of the employee including leaves or breaks, except periods notified as breaks in service by the employer.

For employees who do not fall under the Gratuity Act, the amount due for them is half of the average ten months’ salary multiplied by the number of years of service.

How to calculate Gratuity ?

Gratuity = (Last drawn salary + Dearness Allowance / 26) x 15 x Number of years of service

 

Source : Rediff

Related Posts:

Comments

  1. MANOJ says:

    IS central govt. employee, who joined after 2004 and comes under new pension scheme, eligible for gratuity after retirement.

  2. gurvinder says:

    Dear sir
    Thank for this useful post.My question is for employees having five day week,is the dividing factor will be 22 instead of 26.

  3. Suman Bagchi says:

    I agree with gurvinder because Saturday is also a holiday therefore dividing factor will be 22 instead of 26

  4. PRADEEP KUMAR SHARMA says:

    Is central government employee is eligible for gratuity after resgination serving 5 year service under new pension scheme

    PRADEEP KUMAR SHARMA
    MOB – 91-9662016440
    MAIL – pksharma.sikar@gmail.com

  5. manish lpdha says:

    sir, I was central govt . employee , joined CRPF in oct 2004 in tendered my resignation due to my personal family problem in Apr 2012 whic was accepted on dated 03 apr2012 ,am I eligeble for service gratuity or not.

  6. vijay says:

    sir i request to my 20 year service compled and my basic including grade pay 13010 sir muhe kitna amount mil sakta hai

  7. V V KRISHNA says:

    http://164.100.47.132/LssNew/psearch/QResult15.aspx?qref=134488
    as per the reply given by the honorable minister in Lok Sabha, employees joined central govt. services on or after 1/1/2004 are also eligible for gratuity. NPS is only replacement of Pension (which was drawn by the employees joined services before 1/1/2004) other terminal benefits are as usual like other government servents.

  8. ravi says:

    i am working as a teacher in municipal corporation of delhi
    my basic & da is rs.45201 .my service is 30.7 years
    what amount of gratuity

Important Links Dearness Allowance MACP Important Travelling Allowance Orders House Rent Allowance Child Care Leave Latest on AICPIN