Graduity Calculation Xls Download - CiteHR
Kamalkantps
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Atifalim
Hr Professional
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kindly brief me about graduitiy calculation of terminated employee because i m a new user kindly suggest me some tips to calculate graduitiy
Hi, Please find the attached file for Graduity calculator. Kindly adjust the % according to your country. Atif

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File Type: xls Gratuity Calculater.xls (21.0 KB, 703 views)

gratuity = ((((basic + da) / 26 days of the month x )15 (half month salary) )x number of years completed) eligibility is 5 years of continus service
Dear Mr. Sandeep Kedare,
Welcome to the new world of CiteHR...!!
The payment of Gratuity Act speaks about the continuous service of 5 years by any employee is eligible for Gratuity. The employee should have 240 days of continuous service in the 5th year without any break.
Even if the employee is retired, seperated in terms of resignation or termination, may be deceased yet should be paid in full & final settlement.
- The calculation is very simple: (BASIC +DA / 26 days in a Month) x 15 x No. of completed years of service.
[15 is the 15 days wage for evry completed year of service]
- The maximum gratuity payable is 10 lakhs and the minimum is 3.5 lakhs.
As per your query, the terminated employee has how many years of service?

Dear Sharmila,
I think you are mistaking while saying that the minimum gratuity is 3.5 lakhs, there is no minimum level fixed. 3.5 is the earlier maximum limit, which is now raised to 10 Lakhs.
One more clarification, separation due to resignation or termination but before the continuous service of 4 years and 240 days does not entitles any employee for gratuity. Also once an employee becomes eligible i.e. after completing 4 years and 240 days of service any term from fifth year onwards more that 6 months be it 7 months or 8 months just any term more than 6 month shall be considered as full year for calculation of gratuity purpose and any term less than 6 months would be dropped and shall not be considered for gratuity calculation.

Dear Mr. Kamal,
Yes, the maximum limit is 10 lakhs as per the new Gratuity Act.
However, the 4 years 240 days;
Referring to the Act, it is enough that one has a service about 240 days in the preceding 12 months and it is not really necessary that they should have completed the one years service. Definitely, considering the definitions of continuous of the continuous service in the Payment of Gratuity Act and the ID Act refers that the employee rendering service of 4 years 10 months is considered to have completed 5 years of continuous service u/s. 24(2) is eligible for Gratuity.
Clarifying as: 4 years 8 months (240 day) considered 1 year. Basically the gratuity component is considered baed on the joining date of the employee till leaving should be considered 5 years.

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