Hi to All, How to calculate Gratuity and those who are eligible for gratuity. Can you explain it. Venkat.
From India, Hyderabad
6From India, Hyderabad
As per the Indian Gratuity Act (Payment of Gratuity Act 1972), an employee should complete minimum 5 years in the organisation to become eligible for gratuity. The training period of trainees /Apprentices appointed under the certified standing orders /Apprentice act will not be counted for determining the eligibility period.
Any recent amendments may be checked as I am not working in India currently.
The calculation of gratuity is given below
15 days salary to be given as gratuity for every completed years of service. 15 days will be calculated as detailed below
Gratuity = Monthly Salary/ 26 days x 15 days x No. of yrs. of service.
> 6 months is considered as one completed year of service; < 6 months is ignored.
Last drawn salary will comprise your Basic + DA+ commission (if it is fixed as % of sales turnover)
Max. Gratuity payable under the Act is Rs. 10, 00, 000/-
Regards
KK
From Oman, Muscat
Any recent amendments may be checked as I am not working in India currently.
The calculation of gratuity is given below
15 days salary to be given as gratuity for every completed years of service. 15 days will be calculated as detailed below
Gratuity = Monthly Salary/ 26 days x 15 days x No. of yrs. of service.
> 6 months is considered as one completed year of service; < 6 months is ignored.
Last drawn salary will comprise your Basic + DA+ commission (if it is fixed as % of sales turnover)
Max. Gratuity payable under the Act is Rs. 10, 00, 000/-
Regards
KK
From Oman, Muscat
Dear venkat,
Gratuity is a social security where it is payable by the employer to an employee who completes five years of continuous service. However if someone completes 04 years and 240days in an organisation, he should be considered as eligible for gratuity. Also the completion of continuous service of five years is not necessary incase of termination of employment is due to death or disablement. After attaining eligibility, if an employee serves for more than six month it will be considered as 01 full year. ex: 05 yrs. 06 months and 01 day will be considered as 06 yrs for gratuity calculation.
Calculation:- The gratuity is paid @ 15 days wages (last drawn wages) for every completed year and to get 01 day wages the monthly salary (Baisc +DA) to be divided by 26.
Ex. last drawn salary (Basic+DA) of A is 10000 and hehas served for 07 yrs and 07 months then his gratuity will be calculate for 8 yrs as 10000/26 x 15 x08= 46154/-
From India, Mumbai
Gratuity is a social security where it is payable by the employer to an employee who completes five years of continuous service. However if someone completes 04 years and 240days in an organisation, he should be considered as eligible for gratuity. Also the completion of continuous service of five years is not necessary incase of termination of employment is due to death or disablement. After attaining eligibility, if an employee serves for more than six month it will be considered as 01 full year. ex: 05 yrs. 06 months and 01 day will be considered as 06 yrs for gratuity calculation.
Calculation:- The gratuity is paid @ 15 days wages (last drawn wages) for every completed year and to get 01 day wages the monthly salary (Baisc +DA) to be divided by 26.
Ex. last drawn salary (Basic+DA) of A is 10000 and hehas served for 07 yrs and 07 months then his gratuity will be calculate for 8 yrs as 10000/26 x 15 x08= 46154/-
From India, Mumbai
Dear Venkat,
If your establishment is covered under the Payment of Gratuity Act, 1972 then plz go through section 4 of this Act to know eligibility & calculation of gratuity amount.
R.N.KHOLA
From India, Delhi
If your establishment is covered under the Payment of Gratuity Act, 1972 then plz go through section 4 of this Act to know eligibility & calculation of gratuity amount.
R.N.KHOLA
From India, Delhi
Dear Venkat,
Gratuity is paid to all such employees after their resignation or retirement. Incase of resignation gratuity is paid to such employees who have completed 5 years of service.
If Basic + DA is 14200 and employee has worked for 7 years then
Gratuity= 14200*15*7/26 =57346
Best wishes
From India, Dehra Dun
Gratuity is paid to all such employees after their resignation or retirement. Incase of resignation gratuity is paid to such employees who have completed 5 years of service.
If Basic + DA is 14200 and employee has worked for 7 years then
Gratuity= 14200*15*7/26 =57346
Best wishes
From India, Dehra Dun
Dear Member,
According to sec. 4(3) of the Payment of Gratuity Act, 1972 the amount of gratuity payable to an employee shall not exceed ten lac rupees but if the employer so desires he can give more than this amount.
R.N.KHOLA
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From India, Delhi
According to sec. 4(3) of the Payment of Gratuity Act, 1972 the amount of gratuity payable to an employee shall not exceed ten lac rupees but if the employer so desires he can give more than this amount.
R.N.KHOLA
[/FONT][/COLOR][/B](M)09810405361[COLOR=#3366ff][FONT=Verdana]
From India, Delhi
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