Hello seniors,
I have a query regarding Gratuity calculation. Suppose an employee resigns from his job after completing continuous service of 6 years and 7 months. What will be the number of completed years of his continuous service?
From India, undefined
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I have a query regarding Gratuity calculation. Suppose an employee resigns from his job after completing continuous service of 6 years and 7 months. What will be the number of completed years of his continuous service?
From India, undefined
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Dear Sanjib, We need to calculate it as 7 years of continuation of service.Anything equals or more than 6 months to be counted as a year.
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Thanking you Manoj for solve my quarry. I have another question regarding Gratuity. What should be the percentage of Gratuity in the calculation of CTC?
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Gratuity Calculation Formula
As you are aware, Gratuity is paid as per the provisions of the Payment of Gratuity Act, 1972. The formula applied as per the provisions of the act is as follows: Gratuity Payable = W x Y x 15/26, where W = Last Wage drawn i.e., basic + DA, Y = number of completed years of continuous service, 15 = 15 days' salary, 26 = No. of working days in a month.
Provident Fund Act and Gratuity Percentage
The Provident Fund Act talks about a 12% deduction from wages towards PF, but there is no percentage in Gratuity calculations under the provisions of the Act. However, in order to make a CTC amount, you can use the formula or keep a provision of about 4.5% of CTC, I feel.
From India, Mumbai
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As you are aware, Gratuity is paid as per the provisions of the Payment of Gratuity Act, 1972. The formula applied as per the provisions of the act is as follows: Gratuity Payable = W x Y x 15/26, where W = Last Wage drawn i.e., basic + DA, Y = number of completed years of continuous service, 15 = 15 days' salary, 26 = No. of working days in a month.
Provident Fund Act and Gratuity Percentage
The Provident Fund Act talks about a 12% deduction from wages towards PF, but there is no percentage in Gratuity calculations under the provisions of the Act. However, in order to make a CTC amount, you can use the formula or keep a provision of about 4.5% of CTC, I feel.
From India, Mumbai
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Payment of Gratuity Act, 1972 & The Rules.ppt
THE PAYMENT OF GRATUITY ACT 1972.doc