Gratuity Calculation Sites Search Formula
CiteHRCiteHR
 
HOME RISE NEW TEAM →|

sonali.bagdare Started The Discussion:
Hi All,
I am Sonali.
I just gone through many sites to search for the exact formula for calculation of Gratuity, but still confused some are giving it like
[(Basic+da)/26]*15*no. of Yrs worked

some are giving it like
{[(Basic+da)*15]/26} * no. of Yrs worked

which one is correct n i also want to know the logic for this formula as well the basis +da is yearly or Monthly.
hi i think second one is correct and if you have any doubt refer to labour act Regards Dhruvin
Hello Sonali

First formula is correct.

Gratuity is calculated / paid for 15 days for every year of service completed.

So, first you need to divide the salary (basic & da) with total days of the month which gives you rate/day. then multiply it with 15 and no. of years completed.

Hope it is clear to you

regards
srinath
hi sonali,
the formula is last drawn salary (basic+da) / 26 * 15 *year of service.
for any encashment e.g bonus calculation, leave encashment, deduction of epf, gratuity payment etc the component of basic salary +dearness allowance is consider rather than gross salary, 26 are the working days instead of 30 or 31 days, 15 is the figure for 15 days salary of each year and if year of service is 5 year or more than eligiblity for payment of the same will be possible. i think most of your doubt will be cleared now.
thanks & regards,
from,
sumit kumar saxena,
+91-9899669071, 0120-4131277
mallet 
(Moneycontrol Wealth Calculator List Gratuity calculator) at http://wealth.moneycontrol.com/jtgratuity.php This link is helpful
The formula is basi +da divided by 26 multiplyed by 15 multiplied by no of yrs. completede . If some one crosses 6 months then it would be calculated for the next yr . Madras highcourt have given a verdict that gratuity shall be calculated in 4 yrs 8 months
Dear, Both the formulas are correct and on application u will get same result... Regards, Sesar
Dear sonali interpretation of sumitkumar saxena is perfect and as per the provisions of the payment of gratuity act, plz. Follow the same, kiran kale, kolhapur.
Dear

Basic & DA have to be taken as salary for gratuity calculation, if you take the gross salary it is more than the statutorily prescribed rate which will set as precedent.

the salary ie basic + da has to be divided by 26 to arrive one day salary which has to be multiplied by 15 then by no of years of service rendered. 5 yrs 6 months have to be taken as 6 years.

if any further clarification required, please do mail me.

C Manimaran

ppj134 
Dear Sonali,

I was also a same doubt in my mind few days back and also like u I went thru many sites and yes got confused....but after a discussion with a senior and yes experienced (more than 20yrs) HR professional he said that following formula is correct and also simple to calculate;

-[(Basic+da)/26]*15*no. of Yrs worked

I used it on trail basis and it is really gud and simple....now I am using it on regular basis......It is useful..

Regards,

Prashant

Quote:
Originally Posted by sonali.bagdare View Post
Hi All,
I am Sonali.
I just gone through many sites to search for the exact formula for calculation of Gratuity, but still confused some are giving it like
[(Basic+da)/26]*15*no. of Yrs worked

some are giving it like
{[(Basic+da)*15]/26} * no. of Yrs worked

which one is correct n i also want to know the logic for this formula as well the basis +da is yearly or Monthly.



 
 
 
 






Found This Useful? +Vote Up This Via Google.  

Why Vote? User validation is extremely important for good content to prosper.
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.

Cite.Co helps people come together to solve each other's problems on all aspects of professional life.
Share This Discussion:


3M Users, 100K+ Documents & 450K+ Discussions
About Us - Advertise - Contact Us - RSS   On Google+  
All trademarks and copyrights held by respective owners. Member comments are owned by the poster.
Privacy Policy | Disclaimer | Terms Of Service
Facebook Page | Follow Us On Twitter | Linkedin Network