pm444 Started The Discussion:
Dear All,

I have doubt in Excel for Gratuity Calculation and is that we have calculated that if any one completed 5 years and 7 months, we calculated 6 year for Calculation of Gratuity and one completed 10 years and 4 months, we calculated 10 years for Calculation of Gratuity.

Now my question is that i have required exact formula for above situation.

Thank & Regards,

Dear Membert,

Plz go through section 4 of The Payment of Gratuity Act, 1972 for your query.

With Regards,
Sr. Associate (LL & IR)
Skylark Associates, Gurgaon (Haryana)
(Labour Law Consultants)
Office: 311, AKD Tower, Sector 14, Gurgaon
(M) 09810405361 (O) 0124-4264449
Sir Pls advise how is the Gratuity calculation done ,is it taxable it is pais when an employee leaves and has worked for atleast 5 years, is the same taxable. Thanks Upasana
till date grauity up to 3.5 lac for private sector and Rs 10 lac for govt sector is not taxable. Govt is also going to increased the limit from 3.5L to 10L also for private sector employee. also search in forum for other question will find number of answer for your questions.Br//sanjay

If I have 15 years of service and have 6 months’ approved leave but without pay for 6 months for a particular time during that period, will my number of completed years be considered 14 years ? That is, what is the status of leave without pay? is it considered a part when calculating completed number od years ?


Solution : Many Company are doing aforesaid calculation like 5 year 3 months means gratuity calculate for 5 years. If they organization have union means they must be provide for exact of employer completion.

Solution :

one year gratuity = 15 days basic

one month gratuity = 15 / 12 or 1.25

now you calculated for exact reaming months.

Basic = 6500

No of year Experience = 6 year and 8 months

one year =(6500 / 26 )*15 = 3750


one month = (6500/26) * 1.25 = 312.50 one year = 12 *312.50 =3750

6 year gratuity = 6 * 3750 = 22500

8 month gratuity = 8 * 312.50 = 2500

6 year and 8months gratuity is 25000

(or )

6 year and 8 months then take is = 7 years

formula = ((Basic + Da) * no of year experience )* 15 /26

=6500 * 7 * 15 /26 = 26250 in this case management given more money to



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