Understanding Gratuity and Ex-Gratia Calculations
Can you please tell me how the monthly basis gratuity is given to the employee and what is the calculation for that? Please provide me with details about Ex-Gratia and how it is calculated.
Thank you.
Regards
From India, Pune
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Can you please tell me how the monthly basis gratuity is given to the employee and what is the calculation for that? Please provide me with details about Ex-Gratia and how it is calculated.
Thank you.
Regards
From India, Pune
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Actually, gratuity should be calculated based on the last basic salary multiplied by 15 days divided by the total working days (26) and then multiplied by the total years of service. This is the basic calculation of gratuity:
Gratuity Calculation
GRATUITY = LAST DRAWN BASIC * 15/26 * YRS OF SERVICE
An employee who serves a minimum of 5 years should be eligible for gratuity at the time of relieving or retirement. Please refer to the Gratuity Act for more information.
Ex-Gratia Calculation
Ex-Gratia is when a company is willing to pay a salary to the employee in cases where the employer wants to relieve them. Ex-Gratia will be calculated based on the Guaranteed Cash (gross salary) divided by 30 days and then multiplied by the number of days of Ex-Gratia.
I hope this clarifies the calculation methods for gratuity and Ex-Gratia.
Best regards
From India, Hyderabad
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6Gratuity Calculation
GRATUITY = LAST DRAWN BASIC * 15/26 * YRS OF SERVICE
An employee who serves a minimum of 5 years should be eligible for gratuity at the time of relieving or retirement. Please refer to the Gratuity Act for more information.
Ex-Gratia Calculation
Ex-Gratia is when a company is willing to pay a salary to the employee in cases where the employer wants to relieve them. Ex-Gratia will be calculated based on the Guaranteed Cash (gross salary) divided by 30 days and then multiplied by the number of days of Ex-Gratia.
I hope this clarifies the calculation methods for gratuity and Ex-Gratia.
Best regards
From India, Hyderabad
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Payment of Gratuity Act, 1972 & The Rules.ppt
Gratuity calculation.doc