asish.123
1

Hi,
I have joined on 12/12/2006 and will be released tentatively on 10/03/2012. There is HRA but there is no DA as I can see from Payslip/Papers. What should be the formula for calculation of gratuity?
A) [ (Basic Pay + D.A) x 15 days x No. of years of service ] / 26
B) 1/2 * Average monthly Salary * Completed Years of Service
Regards,
Asish

From India, Calcutta
MANOKAVIN
5

Dear Ashish Option A is correct. Otherwise basic + da / 26 x 15 days wages x No of years service OK
From India, Coimbatore
D.GURUMURTHY
107

Dear Sir,
In your case as there is no DA, you will be eligible for gratuity on Basic only.
The Gratuity Formula : Basic salary / 26days x 15days x No. of years service =........... (gratuity amount)
D.Gurumurthy
HR/IR Consultant

From India, Hyderabad
sivahrd

Hi Ashish,
The formula for calculating gratuity is as follows:
Last drawn basic salary/26*15*No.of completed years of service.
To become eligible, a person should have 5 continuous years of service in the same organisation. Even 4 years and 11 months will not be taken for gratuity calculation.
But after 5 years, 6 months and above is considered as a year. For example if a person is having an experience of 6 years and 6 months, then it will be taken as 7 years.
Hope your queries are answered.
Friends, please revert back.
K S Sivakumaar

From India, Bangalore
S.Deepak Trivedi
1

Dear Asish Kindly calculate Gratuity as Basic Pay x 15 s No Of Years of Service / 26 Regards S.Deepak Trivedi
From India, Madras
usmileplease
Hi K S Sivakumaar U r right , U removed my confusion also. If one employee have completed 5yrs and 5 months then how many years would be counted for Gratuity calculation? 5 or 6?
From India, Faridabad
vivek0612
hi according to me it should be calculated precisely i.e 65 months which is nothing but 5.5 yrs.
From India, Madras
sivahrd
Hi, it should be treated as 5 years only. If it is 5 yrs and 6 months then it will be 6 years.
From India, Bangalore
anchalmba
1

Dear K S Sivakumaar,
I have one doubt as you said for gratuity even 4 year 11 month is not applicable.
But for the same I have read that minimum requirement is 4 years and 240 days for gratuity eligibility. Please Explain it.

From India, Gurgaon
aaa_gupta59
In our organisation we do not have DA but have meal allowance which is considered for calculation of PF. Kindly advise if meal allowance + basic is to be considered for arriving gratuity amount
From India, Mumbai
Community Support and Knowledge-base on business, career and organisational prospects and issues - Register and Log In to CiteHR and post your query, download formats and be part of a fostered community of professionals.





Contact Us Privacy Policy Disclaimer Terms Of Service

All rights reserved @ 2024 CiteHR ®

All Copyright And Trademarks in Posts Held By Respective Owners.