Gratuity Calculation [Thread 537096] - CiteHR
Umakanthan53
Labour Law & Hr Consultant
Mkandukuri
Director - Hr
Yagniah Karlapudi
Asst. Gen. Manager -hr
Abbasiti
Assistant Engineer, Indian Telephone Industries,
9871103011
Private Consultant On Labour Laws
Hotgautam
Hr Manager
Sunidhan
Accountant
+2 Others

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dear sir, my consolidated salary is Rs.30000 and i have completed 27 yrs of service in one organisation but for PF and ESI they are showing my salary of Rs.14900/- how much gratuity will i get in proprietary firm of manufacturing SSI Unit in Bengaluru
Dear Sunidhan,
The Formula for the calculations of the Gratuity is as under:-
Gratuity Calcution:- Basic+D.A multiplied by 15 X No. of completed years of service /26
In your case the amount of gratuity comes to- 30000X15X27=12150000/26= Rs. 4,67,307/-
The maximum amount of gratuity has been recently increased to Rs. 10 lakhs from Rs.3.5 lakhs.
BS Kalsi

If the amount for PF is shown as 14900, then the gratuity calculation will be on 14900 and not on 30000. 14900x15x27 / 26...
Dear Sunidhan, If PF is deducted on a salary of Rs. 14900, gratuity also will be calculated on 14900. Hence gratuity amount is 14900x27x15/26 = Rs. 232096 /- Abbas.P.S
if as per salary register and govt. records, your salary is 14900/- then your gratuity calculation will 14900/26*15*27=232096/-
Dear Mr. Sunidhan,
Gratuity:
Requirement: shall have completed 5 years of service.
( Madras High Court said that 4 completed years of service and in the 5th year if the employee completes 240 days of service (as per Factories Act.), he is eligible for gratuity.
Calculation:
(*BASIC + DA / 26) X 15 X **NO. OF COMPLETED YEARS OF SERVICE
* BASIC +DA : As shown in pay bill (Basic shown for PF will be basic for gratuity also)
**COMPLETED YEAR OF SERVICE: Date of leaving - Date of joining.
(Fraction of a year: less than six (6) months shall be limited to the completed years i.e., 26 years 4 months = 26 years / more than six months, it can be treated as one more year i.e, 26 years 8 months = 27 years)
I am afraid that the above calculation may be wrong.
Regards:
Yagniah K

As only Rs 14900 is shown for Epf , in the absence of DA gratuity will be calculated only on the basis of Rs 14900.Though you are getting 30000Rsd as consolidated salary Co will be considering R s 14900 only as basic.
Varghese Mathew
Labor law consultant
0471 2542059

Dear Sunidhan,
Can you pl answer the following:
(1) How do you say that your salary is consolidated one? If you have any documentary evidence such as salary slip or annual increment sanction orders issued by your employer?

Gratuity has to be calculated on the basis of last drawn salary. The components of salary would be Basic pay + DA + UG allowance(if any). Rest mentioned by Yagniah K is absolutely right.
Dear Sir,
How to online cancellation of shop & establishment registration of rajasthan
Regards
Vinay Kumar

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