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Gratuity calculation and request for payment
Payment of Gratuity Act, No. 12 of 1983 — your figure and a letter asking your employer to pay within 30 days
Your gratuity
Details
Employee [YOUR NAME]
Position [YOUR POSITION]
Employer [EMPLOYER NAME AND ADDRESS]
Date joined [DD/MM/YYYY]
Last working day [DD/MM/YYYY]
Completed years of service [YEARS]
Paid by [MONTH / DAY]
Last basic salary + cost of living allowance Rs. [AMOUNT]
Gratuity for one year Rs. [AMOUNT] (½ month, or 14 days' wage)
Gratuity due Rs. [AMOUNT]
Must be paid by [DATE — 30 DAYS AFTER THE LAST WORKING DAY]
Letter to your employer
[TODAY'S DATE]
The Managing Director / Human Resources Manager
[EMPLOYER NAME AND ADDRESS]
Dear Sir / Madam,
Payment of gratuity — [YOUR NAME], [YOUR POSITION], employee no. [NUMBER]
I served the company from [DATE JOINED] until [LAST WORKING DAY], which is [YEARS] completed years of service. My last basic salary was Rs. [AMOUNT] and my cost of living allowance Rs. [AMOUNT] a [MONTH / DAY].
Under section 5 of the Payment of Gratuity Act, No. 12 of 1983, I am entitled to a gratuity of Rs. [AMOUNT], computed under section 6(2) at [HALF A MONTH'S / 14 DAYS'] wage or salary for each completed year at the rate last drawn. The Act requires payment within thirty days of the end of my service, that is by [DATE].
Kindly credit the amount to my bank account [BANK, BRANCH, ACCOUNT NUMBER] and send me a statement showing how it was computed. Please note that section 5(4) of the Act adds a surcharge of 10% to 30% if the gratuity is paid late.
If the gratuity is to be paid under a collective agreement or my contract on more favourable terms, kindly let me have the computation on that basis.
Thank you for the years of service.
Yours faithfully,
[YOUR NAME]
NIC: [NIC NUMBER] · [PHONE] · [ADDRESS]
Signature: ________________________________ Date: ____/____/________
What the Act says
Rule Payment of Gratuity Act, No. 12 of 1983
Who must pay An employer who had 15 or more workmen on any day in the 12 months before your service ended (s 5(1)).
Who gets it A workman with at least 5 completed years under that employer — whether the employer ends the job, you resign, you retire, or by operation of law. If the workman dies, it goes to the heirs (s 5(1), s 9).
How much Monthly-paid: half a month's wage or salary for each completed year. Others: 14 days' wage or salary for each year. Always at the rate last drawn (s 6(2)).
What counts as pay Basic or consolidated wage or salary, plus cost of living allowance, special living allowance or similar allowance, and piece rates (s 20).
When Within 30 days of the end of service (s 5(1)). Late: surcharge of 10% up to 1 month, 15% to 3 months, 20% to 6 months, 25% to 12 months, 30% after that (s 5(4)).
Better terms If a collective agreement, award or other agreement gives more, it is paid under that instead — not both (s 10).
Not covered Domestic servants and personal chauffeurs in a private household; workers on a non-contributory pension (s 7).
Dismissal for fraud If dismissed for fraud, misappropriation, wilful damage or causing loss, the gratuity is reduced by the loss caused (s 13).
Surcharge if it is paid late — s 5(4)
Paid Surcharge On this gratuity
Up to 1 month late 10% Rs. [AMOUNT]
1–3 months late 15% Rs. [AMOUNT]
3–6 months late 20% Rs. [AMOUNT]
6–12 months late 25% Rs. [AMOUNT]
More than 12 months late 30% Rs. [AMOUNT]
If it is not paid
Keep a copy of this letter and the date you handed it over or posted it (registered post).
After the 30th day, ask in writing for the computation and the payment date.
Complain to the Labour Office for your area (Department of Labour). The Commissioner of Labour can certify the amount due — with the surcharge — and recover it through the Magistrate's Court (s 8).
Bring your letter of appointment, salary slips, service letter, NIC and EPF number.
Payment of Gratuity Act, No. 12 of 1983 (Acts 41 of 1990, 62 of 1992), ss 5, 6, 7, 8, 10, 13 and 20, as published by the Department of Labour. Amounts before tax. A calculation and a letter template, not legal advice.