Calculation of Gratutity

in my organisation pf is calculted as (basic+da)/26 *15 * No of years

The Gratuity is payable only when employee completes 5 yrs continuous service with one employer. If the period of service is less than 5 yrs. Employer is not bound to pay gratuity.
Ninad Sirdesai

The Gratuity is payable only when employee completes 5 yrs continuous service with one employer. If the period of service is less than 5 yrs. Employer is not bound to pay gratuity.
Ninad Sirdesai

It will be for 5 years, as minimum Gratuity payable is for 5 years

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Everyone thinks of changing the world, but no one thinks of changing himself.....

Hi praveena and Amith,

You are totaly right. s it is mandatory to complete 5 years of continous service in the same organisation without break to get eligibility for gratuity.


Shahida.R
HR Manager.

Hi Pooja,

This is maharana from Mumbai as per the discussion regarding the gratuity for the last year of service, if the employee has completed More than 6 months, it will be treated as full year for purpose of gratuity as per the act.

regards,

R. M. Maharana

Pravinaa has given the correct answer and as per this the person who has completed 4 years, 4 months and 17 days in his employment is not entitled for gratuity.

S. K. Moudgal
9311689205

Dear Amith,

There is judgement from court , if employee completes 240 days in 5th year, he shall be eliglble.

Regards,

Mukesh Sachdeva

Re:
Dear Disha Bansal,

First of all my name is Pravina not parveena, pls......... tak care of this!

Pls understand it was by mistake I've written 15 years ther. Anyways u can also make that corrections to chk this out. for ex.

Instead 5 years take 15 years & make the same changes in the formula as given below:

e.g. : Basic = Rs. 10,000/-
No. of years = 5 years / 15 years

Gratuity = 10,000*15/26*5 / 10,000*15/26*15
= Rs. 28,846.15/- = Rs.86,538.45/-

See it was so simple........

I think this much understanding one should have before asking like this......

Bye the no probs........



Hi Parveena,

If you said that Formula for gratuity calculation is as given below then why in the example u have taken no. of years 5 instead of 15?

Basic*15/26* no. of years

e.g. : Basic = Rs. 10,000/-
No. of years = 5 years

Gratuity = 10,000*15/26*5
= Rs. 28,846.15/-

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Thanks & Regards,
Pravinaa
HR Executive
FFCL.

Thanks Shahida, Also thankful to SkMoudgal........

Keep posting nice stuffs....

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Thanks & Regards,
Pravinaa
HR Executive
FFCL.