Dear Sir, I am working as a personnel officer, i need service & gatuity calculator. kindly guide me how to calculate the sevice and gratuity, Regards Santosh Harshe
From India, Nagpur
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6From India, Nagpur
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Dear Santosh,
An employee is eligible for gratuity if they have completed 5 years of service. Fractions of a year below 6 months should be ignored, while anything above six months should be treated as a completed year. For example, 6 years and 2 months should be treated as 6 years, whereas 6 years, 6 months, and 5 days should be considered as 7 years. In the case of death, this restriction is waived.
Calculation of gratuity:
Last basic salary + DA /26 * 15 * years of service rendered.
Here, 26 signifies 26 days, which is equivalent to one month. Due to the employee receiving 4 paid holidays a month, they are considered to have worked for 26 days, which is taken as one month for gratuity calculation purposes.
The number 15 represents an employee's 15 days of Basic + DA at the time of retirement/resignation. To clarify, an employee receives their last 15 days of basic salary + DA for every completed year of service as gratuity.
Thank you.
From India, Calcutta
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An employee is eligible for gratuity if they have completed 5 years of service. Fractions of a year below 6 months should be ignored, while anything above six months should be treated as a completed year. For example, 6 years and 2 months should be treated as 6 years, whereas 6 years, 6 months, and 5 days should be considered as 7 years. In the case of death, this restriction is waived.
Calculation of gratuity:
Last basic salary + DA /26 * 15 * years of service rendered.
Here, 26 signifies 26 days, which is equivalent to one month. Due to the employee receiving 4 paid holidays a month, they are considered to have worked for 26 days, which is taken as one month for gratuity calculation purposes.
The number 15 represents an employee's 15 days of Basic + DA at the time of retirement/resignation. To clarify, an employee receives their last 15 days of basic salary + DA for every completed year of service as gratuity.
Thank you.
From India, Calcutta
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