Gratuity Calculator

What is Gratuity?

This is the statutory obligation defined in the Gratuity Act 1972. It is the obligation of the employer for the payment in the below situation.

1. An employee who completes the service of 4 years & 8 Months. The reference is in the Madras High Court judgement in the case of Salem textile case (2011) which had concluded that an employee would be eligible for gratuity even if he has completed 4 years and 8 months / 240 days. Even though this decision applies only to Tamil Nadu, the employers are taking a safer stand & pay on this basis.
2. When the employee completes 5 years of service, then the Gratuity is payable for each completed year of service or part thereof. i.e. if completed 6 months or more, then counted as 1 year of service & added to the number of years of service.
3. The employee should leave an organisation (whatever may be the reason) after the completion of service as mentioned above.
4. In case of your death, the gratuity is paid to the nominee, or to an employee on disablement on account of a sickness or an accident. In this case, the criteria of completion of the minimum number of years is not applicable.