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can anybody help me with the concept and gratuity? also i want to know calculation of gratuity? does the calculation is same for service industry & manufacturing industry?
14th July 2013 From India, Ahmedabad
pls click this link for calculation
Gratuity Calculation India
15th July 2013 From India, Delhi
Dear Aarti and other freshers,

We would appreciate if you could search the site or web for basic queries which have already been addressed. You can also use side bar to check the relevant topics discussed to gain better insight.

As for your query about Gratuity calculations,

It is 15 days' salary for every year of service rendered.

Please note that though a person is eligible to claim the gratuity amount only after he serves a minimum period of 5 years (except in case of death or disablement) the employer are supposed to credit the gratuity amount year on year in an account. Gratuity is a safe and compulsory due on employer to be given to employee. Gratuity cannot be withheld except in certain situations as prescribed by the Gratuity act.

Calculation is 15/26 * (Last drawn salary) * No. of years served.

Note that after 5 years of service is rendered, we can thereafter round the service tenure to nearest decimal by -

If the person serves for upto 6 months, the years is rounded to lower number (i.e. 5.5 years is rounded to 5 years)

If the person server more than 6 months, years is rounded to upper number (i.e. 5.7 years is rounded to 6 years)

You can read further on -

1) https://www.citehr.com/445131-gratui...ice-years.html

2) https://www.citehr.com/166761-gratui...ic-salary.html

3) https://www.citehr.com/235334-confus...lculation.html

4) https://www.citehr.com/330656-need-i...nd-amount.html

Hope this will help you.
15th July 2013 From India, Mumbai
My Father is an govt bus driver... he rendered 28 yrs service and his last drawn salary 18,0000. 15/26*18000*28=290769.... may i know tis s right...........
16th July 2013 From India, Chennai
According to me, The ideal calculation of gratuity 15*Avg of last 3 month basic salary*No. Year Serviced/26
16th July 2013 From India, Rajkot
Dear all,
Only for your information if employee continues work in same organization more than 4.8 or 5 year than he is eligible for gratuity.
Gratuity Calculation
current basic/26*15*no of years
Gratuity amount limit is 10 Lakh
Thanks and Regards
Mahendra Patole
16th July 2013 From India, Mumbai
As per the experts view, it is ideal to count on average of last 3 month. and ya gratuity amount limit is 10 lack
16th July 2013 From India, Rajkot
Hai First confirm his last drawn basic salary is Rs 18000. Then calculate as: Current basic/26*15*no of years Regards Mano
17th July 2013 From India, Coimbatore
Hi All, Is it compulsory to complete 240 physical present days in each year while calculating gratuity?
18th July 2013 From India, Nagpur
I don’t think so, you have to complete minimum 5 year in a organization than and than you are eligible for gratuity.
18th July 2013 From India, Rajkot
R Sir I have seen the calculation of Gratuity amount but it may difference of Govt. amount. So can u advice me whether it is correct or not?
24th July 2013 From India
Dear Yoghitha, Calculation of gratuity is as per law is follows: - Basic Salary X No. of year Service X 15 /26 . You could calculate as per the above. Surendra Shekhawat
24th July 2013 From India, Jaipur
Gratuity Eligibility :
1. Any person employed on wages/salary.
2. At the time of retirement or resignation or on superannuation, an employee should have rendered continuous service of not less than five years.
3. Payable without completion of five years only when death and disablement.
This gratuity calculator is applicable only for indan employee.
Gratuity Calculation In India = [ (Basic Pay + D.A) x 15 days x No. of years of service ] / 26
24th July 2013 From India, Chennai
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