hi all ! As I understand, Gratuity is calculated @ 4.81% of Annual Basic. Is it the basic at the time of exit or 4.81% of all the years of service rendered. Request enlighten ! - KRK
From India, Tirupati
Wages Means: Basic+ DA
Wages for Calculation: Sec-2(s) @ 15 days wages for every completed years as if the month comprises of 26 days at the last drawn salary.
(Basic+DA / 26) * 15 * No. of completed years of services.

From India, Kota
Very clear. Thanks a lot ! I also need a powerpoint presentation on all the aspects of Factory Act 1948. Can someone pl forward the link for the comprehensive ppt. Regards -KRK
From India, Tirupati
I have some material on all the related acts of labour. May be it could be usedful for you. i am attching the same. if reqd i can send some more material. Regds, Rajesh
From India, New Delhi

Attached Files
File Type: pdf USEFUL TIPS ON LABOUR LAWS.pdf (362.5 KB, 332 views)

Dear K.Rama Krishna,
4.81% on Existing Basic+D.A is monthly gratuity payable for an employee. It will be used only for calculation of CTC of an employee and I was arrived from the following calculation.
Annual Gratuity = Basic+DA x 15/26
OR
Annual Gratuity= Basic+DA x 0.576923
Monthly Gratuity = Basic+DA x (0.576923/12)
OR
Monthly Gratuity = Basic+DA x 0.048077
OR
Monthly Gratuity = Basic+DA x 4.81%
I think it cater your requirement.
regards,
Ramesh Rao
H.R, Sirpurpapers

From India, Hyderabad
Hi All, Can we consider below for gratuity calculation. (last drawn monthly basic/26) * 15 * no. of completed years Rgds, Durgesh
From India, Delhi
Hi,
Calculation of Gratuity:
1) For Monthly Rated Employees:
(Last drawn wages*26) * 15 * No. of years of service completed
2) For Piece-rated Employees:
(Average wages*26) * 15 * No. of years of service completed
3) Seasonal Establishments:
Gratuity shall be paid at the rate of 7 days wages for each season. (Here the employment period is less than a year.)
4) Gratuity on Reduced Wages due to Disablement:
[Last drawn wages (before the disablement)*26] * 15 * No. of service completed + [Last drawn wages (reduced rate after disablement, i.e. just before termination of employment)*26] * 15 * No. of years of service completed.
Here Last drawn wages = Basic + Dearness Allowance

From India, Mumbai

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