Dear young friend Sonali,
Pl see the payment of Gratuity Act,section4(2) Explanation, it is clearly mentioned:Dividing the monthly rate of wages last drawn by the Employee by 26 and multiplying the quotient by 15.
Example: Basic+DA= 3000/26 Multiply 15=you get1730.76923multiply5 years service=Rs8654/=is the gratuity payable for a person who was drawing Rs3000/= as Basic+DA with 5YEARS OF CONTINUOUS SERVICE.This is an Explanation by an amendment in the Act provided by the GOVT after the supreme court judgement in LalappLingappa case in 1980
From India, Madras
Pl see the payment of Gratuity Act,section4(2) Explanation, it is clearly mentioned:Dividing the monthly rate of wages last drawn by the Employee by 26 and multiplying the quotient by 15.
Example: Basic+DA= 3000/26 Multiply 15=you get1730.76923multiply5 years service=Rs8654/=is the gratuity payable for a person who was drawing Rs3000/= as Basic+DA with 5YEARS OF CONTINUOUS SERVICE.This is an Explanation by an amendment in the Act provided by the GOVT after the supreme court judgement in LalappLingappa case in 1980
From India, Madras
Thanks Sonali,
I want also to know that formula. My employee is resigned which is worked in my organization for 5.4 years.
I think First formula is right.
Regads,
Sachin Kashid
Impossible doesn’t mean It is not possible,
It actually means No one can done it so far.
From India, Pune
1I want also to know that formula. My employee is resigned which is worked in my organization for 5.4 years.
I think First formula is right.
Regads,
Sachin Kashid
Impossible doesn’t mean It is not possible,
It actually means No one can done it so far.
From India, Pune
Go by the mathematics calculation rule of solving first in the order of "BODMAS" B = Brackets O = Of D = Division M = Multiplication A = Addition S - Subtraction
From India, Chandigarh
From India, Chandigarh
Both formulas work. Both are same according to mathematical calculation.
Anyway the steps to calculate gratuity are, first (Basic+Da) should be divided by 26 to get (Basic+DA) per each day. Then the 15days gratuity for number of years worked should be calculated.
Regards,
Santosh
From India, Hyderabad
Anyway the steps to calculate gratuity are, first (Basic+Da) should be divided by 26 to get (Basic+DA) per each day. Then the 15days gratuity for number of years worked should be calculated.
Regards,
Santosh
From India, Hyderabad
Mathematically both are same formulas. Before making comments as 'first one is correct', 'second one is correct' etc. please have an advice from a mathematical expert. Abbas.P.S
From India, Bangalore
From India, Bangalore
Dear Sonali
Basic and DA should be taken as wages for gratutity, the monthly salary should be divided by 26 to arrive per day salary and resulting figure should be multiplied by 15 to arrive 15 days salary then multiply it by number of years of service, you will get the gratutity payable to the employee.
C Manimaran
9262478400
From India, Tiruchchirappalli
Basic and DA should be taken as wages for gratutity, the monthly salary should be divided by 26 to arrive per day salary and resulting figure should be multiplied by 15 to arrive 15 days salary then multiply it by number of years of service, you will get the gratutity payable to the employee.
C Manimaran
9262478400
From India, Tiruchchirappalli
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Gratuity calculation.doc
Gratuity Calculation tool.xls