Format Of Gratuity Calculation For Payment - XLS Download - CiteHR
P Ramachandran
Hr & Administrative Manager

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Sir, Can anybody do it clear that if there is any particular format or register to calculate Gratuity
An is this a "Expenditure" for the paying company or Firm.
If its a Manufacturing Unit then whether this amount of gratuity is to be added in Cost of production or to be added in Expences???
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Here number of years are to be considered full year if he crosses more than 6 months, to the next year. for example : An employee puts service for 7 years and 7 months, his no.of years to betaken as 8 years and if his service is 7 years and 5 months is to be taken as 7 years only.

B) ELEGIBILITY FOR GRATUITY if the employee completed 5 years (not 4 years and 6months etc.,) only is elegible for gratuity.

c) there is no prescribed format for Gratuity register under the act. instead you may have a register containing the columns as


Employee number

Name of the employee

Father's/ husband's name

Date of Birth

Nominee to the Gratuity

Date of Joining

Date of Leaving

No. of years service

Gratuity years

salary at the time of leaving

Amount of gratuity

Date of payment

Mode of payment

Signature of employee


It is an expenses to the firm and allowable under IT act etc., but it is not to be taken as dirct cost while preparing cost sheet. It will be included with administrative overhead.
Sir in Above replies I dint get the Meaning of Column containing header as "Gratuity years".
Moreover I would like to mentioned that m asking about gratuity for the labours works on Weekly Wages.
What willl be the rate for those Yearly 15 days to be counted as gratuity, the latest rate of wages or the rate of wages we paid in last years ???
Dear Bikash,
Clarification for 1.: Gratuity years means the no.of years of service done by the employee in the concern. Say for example Mr.A joined in the company on 1.12.2000 He left the services on 17/08/2010. His total service years is 9years and 9 months. This is called no.of years service for the employee. The same is to be rounded to 10 years as the month is over and above 6,it should be counted as one year - this is called gratuity years. His last drawn salary or the salary at the time of resignation is Rs.26000 permonth.

Clarification 2. Calculation of Gratuity: 26000 x 15 x 10 divided by 26
Then the amount of gratuity will be Rs.150000.

Clarification 3: Since the continuous service is emphasised in the Gratuity Act, it is applicable only for regular employees. as you mentioned the employees paid as weekly wages their salary for sunday is not calcuated and they are treated as casual employees for those gratuity is not applicable. But if they are treated as permanant employees on your roles by considering the continous service, they are also elegible for gratuity.

Clarification4: yealy 15days is meant that 15 days salary for year service is paid as gratuity.
I hope it will be clear to you.

Dear Piyali, Please see the attachment which is useful to you. Thanks P.Ramachandran

Attached Files
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File Type: xls PF,ESI WORKING SPECIMEN.xls (26.0 KB, 2899 views)

PF Computation

Employees Contribution = 12 % of Salary Earned
Employer’s Contribution = 8.33 % of Salary Paid
__________________________________________________ ____
Total = 20.33 % A/c. No. 1

Employer’s Share - Pension Fund : 3.67 % A/c. No. 10
Administration Charges : 1.1 % A/c. No. 2 D.L.I. : 0.5 % A/c. No. 21
Adm. Charges of D.L.I. : 00.1 % A/c. No. 2 (Min. Rs. 2/-)
NB: In above contribution only 12 % for PF is to be deducted from the salary earned by each of the the Employees and rest all is to be deposited by the Employer.

Attached Files
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File Type: xls PF - Blank Challans.xls (57.0 KB, 1583 views)

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