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ira9_sharma Started The Discussion:

How To Calculate Gratuity?

Ankita_ Rastogi -  Member Since: Apr 2008
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

Charu Tugnat -  Member Since: Feb 2008
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 .

rajendragargi -  Member Since: Feb 2008
thanks please this will definitely help me out in solving and calculating gratuity for our employees.

rbkmenon -  Member Since: May 2007
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 -  Member Since: Mar 2007
  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 -  Member Since: Dec 2008
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 -  Member Since: Mar 2007
Sumita, No, There is an element of continuous service for 5 years with the same establishment.

SumitaSen -  Member Since: Dec 2008
Thanks Anurag. But then the money that company deduct from salary every month.. how to get that mony?

Anurag Jain -  Member Since: Mar 2007
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.
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