Labour Laws & Ir
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Calculation of gratuity is to be made as per section 4 of the P G Act, 1972. Changes in the definition of the employee & gratuity payment limit have been noticed during the last twelve months.
14th December 2010 From India, Delhi
(average last 3 month drawn basic X 15 X No of years)/26
But the employee has to complete min 5 years of contineous service in organisation.
and the recent cieling is 10,00,000/- as earlier it 3.5 L
14th December 2010 From India, Bangalore
the formula for calculating gratuity is last pay drawn by the employee/26 X 15 X Number of completed years of services.the maximum gratuity payable is three lakh fifty thousand but the payment of gratuity act was ammended again the amount exceed to Rupees ten lakh.
15th December 2010 From India, Raipur
On Thursday, in the lead of PM Manmohan Singh, this decision was taken at a cabinet meeting. This proposal of Labor and Employment Ministry has been given approval. Although many state governments has provided this type of advantage earlier. It is better decision regarding gratuity act to raise the Graduity limit.
CCEA has taken decision to open the 137 General Nursing and midwife school to remove the scarcity of nurses and midwives. These schools will be made in Bihar, Chhattisgarh, Madhya Pradesh, UP, Uttarakhand, Rajasthan, Orissa, Himachal Pradesh and others. The amount of 1370 crores will be spent on this planning.
For the Gratuity calculation the gratuity calculation formula is
1. basic/26 x 15 days x number of years of service
2. BASIC + DA (Last Pay drawn) X 15 /26 X No. OF YEARS WORKS
Gratuity is to be paid to any employee only he provides service for a minimum time of five years at a stretch with his employer in company. The Gratuity calculation is done as per the last average remuneration drawn and time in years served by an employee.
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16th December 2010 From India, Mumbai
Please find the gratutiy calculations below :
( ( Last month drawn basic + D.A) X 15 X No of years completed years of service)/26
But the employee has to complete min 5 years of continuous service in an organisation and the recent cieling is 10,00,000/- as earlier it was Rs.3,50,000/-
16th December 2010 From India, Bangalore