How to calculate gratuity - termination of employment Xls Download
CiteHR
 
HOME ANSWERED NEW ABOUT LOGIN
Home > Human Resource Section > Talk To Seniors

How To Calculate Gratuity - Termination Of Employment

ira9_sharma Started The Discussion:

How To Calculate Gratuity?

Ankita_ Rastogi - Contributing Member
Gratuity is calculated as (Basic +DA)/26*15*number of completed years of service. 15 is 15 days wage for every comleted year of service.it is applicable after 5 continious years of service

Any employee working in an organisation for more than equal to 5 yrs is eligible for gratuity which is paid only on retirement or separation by means of resignation or termination, paid with his full n final account. it is calculated as (Basic)/26*15* no . of completed yrs of service , ie the employee is paid for 15days extra for every completed yr . if the part duration is more than 6 months it is taken as one full yr and if it is less thenit is treated null .

thanks please this will definitely help me out in solving and calculating gratuity for our employees.

rbkmenon - 
gratuity is calculated as under: 15/26 x pay (basic + DA)xno of years of service Period over six mths is treated as one year

Anurag Jain - Contributing Member
  1. Gratuity = Monthly Salary (Basic +DA) x 15 days x No. of yrs. of service*
    26
  2. *Completed years of service: More than 6 months service will be counted as full year of service i.e. 1 year 7 month will counted 2 years
  3. Max. Gratuity payable under the Act is Rs. 3,50,000*/- * Please confirm it, This is exempted from tax if drawn after the retirement or leaving the job.

SumitaSen - 
if i work less than 5 yrs in any company and join other company which also has gratuity can I get that











quote=Anurag Jain;588036]
  1. Gratuity = Monthly Salary (Basic +DA) x 15 days x No. of yrs. of service*
    26
  2. *Completed years of service: More than 6 months service will be counted as full year of service i.e. 1 year 7 month will counted 2 years
  3. Max. Gratuity payable under the Act is Rs. 3,50,000*/- * Please confirm it, This is exempted from tax if drawn after the retirement or leaving the job.
[/quote]

Anurag Jain - Contributing Member
Sumita, No, There is an element of continuous service for 5 years with the same establishment.

SumitaSen - 
Thanks Anurag. But then the money that company deduct from salary every month.. how to get that mony?

Anurag Jain - Contributing Member
Sumita,

They must returned it to the employee at the time of leaving; if they have made a suitable provision in their Balance Sheet; in this regard.
----------------------------------------------------------------------

Found This Useful? +Vote Up This Page 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.
This discussion thread is closed. If you want to continue this discussion or have a follow up question, please post it on the network. Add the url of this thread if you want to cite this discussion.


Explore Topical Knowledge Areas

Interesting Relevant Discussions


DISCUSSSION STATISTICS


4
LIKES

13135
VIEWS

19
REPLIES

PLEASE KEEP YOUR CONDUCT PROFESSIONAL AND POLITE


3M Users, 100K+ Documents & 450K+ Discussions

Share »

Community Support & Professional Insights. Login or Register.
Email/Username     Password  

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