navinjoshi9 Started The Discussion:
Dear All,I have a little confusion about calculation of gratuity as simply we calculate the same as :(((Basic +DA)/26)*15)*no. of working years but how we calculate when an employee gets an increament every year and the basic salary changed every year.can we calculate gratuity every year.please advise.thanks,ncj
Posted 27th June 2010 From India, New Delhi

Dear Member,

This is to be calculated on last drawn rate of Basic & DA/VDA if any. We are not required to calculate gratuity every year. For more details go through section 4 of the Payment of Gratuity Act, 1972.

With Regards,
Sr. Associate (LL & IR)
Skylark Associates, Gurgaon (Haryana)
(Labour Law Consultants)
(M) 09810405361

Posted 27th June 2010 From India, Delhi
Hello, The last drawn Basic salary will be taken into consideration for gratuity calculation.
Posted 28th June 2010 From India, Bangalore
thanks for advise but how can we manage gratuity account of each employee annual basis and how we make provision on our B/s.
Posted 28th June 2010 From India, New Delhi
Dear Navin, We will consider only the last drawn salary even though basic salary changed every year of a employee. (last drawn salary(basic+DA)*total years of service*15)/26 Regards, Sai Prasad.
Posted 29th June 2010 From India, Hyderabad
What about if a person works within group companies for 5 years i.e. Mr. A joins an organization X (India- Madras) on 1st april-2000 An Indian comany. He was deputed in organisation Y from 1st April 2004 in USA- los angeles. He was again deputed to organisation Z in 2006 (India- Ahemdabad). All the above mentioned oganisations are seprate entity but under one group company (Indian MNC) Parent company called XYZ. whether he is eligible for any gratuity?
Posted 29th June 2010 From Saudi Arabia, Riyadh
Dear Pawan,
Yes, He is entitled for the Gratuity.
As he has not resigned from any unit & perhaps use a transfer letter for moving from one unit to another.
His years of service within the group will get accumulated & made him entitled to claim gratuity.

Thanks & Regards
Deepak Jain
Posted 1st July 2010 From India, Gurgaon
hello sir, This is venkateswarlu we are presently Gratuity per month Basic+Da * 4.81% this calculation correct (or) not please confirm my dough. my e-mail.
Posted 2nd July 2010 From India, Hyderabad
Dear Member,

If you have taken any insurance policy under the P G Act, 1972 then contact your insurance branch office for having knowledge on payment of premium for your employees.

Skylark Associates, Gurgaon (Haryana)
(Labour Law Consultants)
(M) 09810405361

Posted 18th March 2011 From India, Delhi
dear all please ask me, my gross salary Rs. 25000/-. please suggest how many % of BASIC, HRA, CONVEYANCE & ANY OTHER ALLOWANCES TO BE BIFFUERCATE.
Posted 20th March 2014 From India, Surat


Disclaimer: This network and the advice provided in good faith by our members only facilitates as a direction towards the actions necessary. The advice should be validated by proper consultation with a certified professional. The network or the members providing advice cannot be held liable for any consequences, under any circumstances.

About Us - Advertise - Contact Us - RSS   On Google+  
Privacy Policy | Disclaimer | Terms Of Service
Facebook Page | Follow Us On Twitter | Linkedin Network