Dear All,
It seems lot of people are confused on the number 15 and 26 used for calculation of payment.
Let me clarify the same.
As per the Gratuity Act, 1972 para 2 "For every completed year of service or part thereof in excess of six months, the employer shall pay gratuity to an employee at the rate of fifteen days wages based on the rate of wages last drawn by the employee concerned".
Means for every year of service 15 days wages is payable and to derive the per day rate of wages, the monthly wages should be devide by 26 days (Excluding Sunday out of 30 days month).
Current wages X No. of year in service X 15/26 = Payment of Gratuity
Rgds..Kumar Anand
HR - SAMSUNG
It seems lot of people are confused on the number 15 and 26 used for calculation of payment.
Let me clarify the same.
As per the Gratuity Act, 1972 para 2 "For every completed year of service or part thereof in excess of six months, the employer shall pay gratuity to an employee at the rate of fifteen days wages based on the rate of wages last drawn by the employee concerned".
Means for every year of service 15 days wages is payable and to derive the per day rate of wages, the monthly wages should be devide by 26 days (Excluding Sunday out of 30 days month).
Current wages X No. of year in service X 15/26 = Payment of Gratuity
Rgds..Kumar Anand
HR - SAMSUNG