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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

R.N.Khola -  Member Since: Feb 2009
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,
R.N.Khola
Sr. Associate (LL & IR)
Skylark Associates, Gurgaon (Haryana)
(Labour Law Consultants)
(M) 09810405361
Quote:
Originally Posted by navinjoshi9 View Post
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

GiriKL -  Member Since: Sep 2009
Hello, The last drawn Basic salary will be taken into consideration for gratuity calculation.

navinjoshi9 -  Member Since: Nov 2008
thanks for advise but how can we manage gratuity account of each employee annual basis and how we make provision on our B/s.

sai prasad.r -  Member Since: Sep 2007
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.

pawang4u -  Member Since: Jan 2010
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?

DEEPAKJAIN1307 -  Member Since: Jun 2009
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

venkateswarlu singadala -  Member Since: Jun 2010
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. venkateswarlu_singadla@yahoo.com

R.N.Khola -  Member Since: Feb 2009
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.

R.N.Khola
Skylark Associates, Gurgaon (Haryana)
(Labour Law Consultants)
(M) 09810405361
Quote:
Originally Posted by prakash9987 View Post
How to calculate gratuity premium for each employee.

prakash9987 -  Member Since: Jan 2011
dear all please ask me, my gross salary Rs. 25000/-. please suggest how many % of BASIC, HRA, CONVEYANCE & ANY OTHER ALLOWANCES TO BE BIFFUERCATE.


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