Compliance Manager
Manager- Hr & Ir
Manager Hr
+2 Others

Thread Started by #RavinderHR

Appreciate your help on the below question:
A long term employee has deceased in hospital after non professional illness.
How to calculate the gratuity?
- age of Employee: 42
- Date of Joining – 01/09/2001
- Date of Expire – 10/06/2018
- Total service – 16 years 9 month (= 17 years)
- Salary: 150000
I would calculate the gratuity as below:
1,50,000*15/26 *17= 14,71,153 Rs
* Is that calculation correct?
* Is there any additional amount on account of “death gratuity”
* is the gratuity to be paid fully to his wife, or partly to his minor kids (being deposited in this case)? (there is no nomition form)
* Employee has 60 days negative leaves (as company continued to pay his salary while he was in hospital). Can this leaves be deducted?
Thanks a lot in advance for your opinions.
29th June 2018 From India, Delhi
150000 ... Is it the monthly gross? If yes, then correct
Additional money can be paid on account of GRATITUDE
Wife or Father
Removing 60 days (you already paid. So don't recover)
still makes the total years to 17.
29th June 2018 From India, Chennai
"Removing 60 days (you already paid. So don't recover)
still makes the total years to 17.""
As per the definition of continuous service(sec 2a(1) of Payment of Gratuity Act 1972),these 60 days of hospitalisation also counts for working out total service.
Just for information
29th June 2018 From India, Pune
Since the member did not file any nomination, and a death you have to tell them, to obtain a legal heir certificate. Deposit the Gratuity calculated, before the Gratuity Authority under payment of Gratuity Act, for disposal of the claim, by the legal heirs.
29th June 2018 From India, Madras
Thanks all for your contribution.
Regarding the 60 days negative leave: In my opinion the salary for the 60 days negative leave should be deducted from the gratuity
In this case
Gratuity: 150,000*15/26 *17= 14,71,153 Rs
negative leave: about 3,00,000
= amount to pay: 11,71,153
29th June 2018 From India, Delhi
The calculation has to be on the basic salary plus DA if any and not on the gross. Please take this into consideration if the same was missed out.
Thanks and Regards
29th June 2018 From India, Hyderabad
As per payment of gratuity act 1972 section 4(2) wages of fifteen days. The wages mean basic +DA.
Formula= last drawn wage*15*total service/26.
29th June 2018 From India, Pune
Ravinder Hr,
Kindly read the provisions of Sec 2 of Payment of Gratuity Act,
Continuous service is clearly defined.
60 days of hospitalisation leave cannot be deducted.
29th June 2018 From India, Pune
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