Gratuity Calculation - PDF Download [Thread 391853]

What happens in case the person is on leave for 6 months. will he be eligible for gratuity

Yeah.. The fore-said calculations are right. 5 yrs of continuous service in an organization is mandatory to getting Gratuity. Calculation is
Last drawn Basic+Da* years of service*15/26
Regards,
Kannan R

yes ofcourse you are right nirmala... in my organization we also consider in the same way...

Hii everyone,
its good to see that lots of users giving his ideas of aforesaid problem.
i really apprecaite that, but no one reached to solution of particular querry if an employee expired after 5 years of consecutive service in the organisation.
here i have the solution of it.
the nominee can collect the payment of gratuity what you mention in form F.
For Changing the nomination the employee has to fill the form H(Modification of Nomination) during sercice.
For claiming the payment of gratuity by employee nominee in case he expired then Nominee has to fill the Form J.
For Claiming the payment of gratuity by Legal heir the form K will be used.
For more information regarding the gratuity rules and forms, i am enclosing herewith Gratuity Act.
Hopefully You will appreciatte it,
Thanks

for gratuity calculation =current basic*15/26*no. of year
for examaple if the currrent basic on the time of left of the service is 12000*15/26*service periods is minimun 5 year=34615

Dear Karthi,
Gratuity will be paid only if the employee has worked for more than 5 yrs. only in case of death the employee who has served more than 6 month will be eligible for gratuity payment.
If the death employee is served for more than 180 days in the year he will be eligible for 1 yr gratuity.
Gratuity will be calculated as follows
Last drawn(Basic + DA) / 26 * 15 * No. of years.
Eg. Basic + DA = 10000, No. of yrs 10 yrs.
10000/26*15*10 = 57692/-
If the same employee works for 10 years & 7 months the gratuity will be calculated for 11 yrs and less than 10.6 yrs it will be taken as 10 yrs only.
Gratuity amount should not exceed more than 10 Lakhs.

hi,
if any person works 7months and after that expired. as per aforesaid discussion he is eligible to get 1yr gratuity. his basic salary was 8500. how can i calculate?

Dear Vijai,
Calculate as below.
Gratuity =8500/26*15*1(since more than 180 days it is calculated as 1 yr) = 4904/-

what ever the case may be if he has served more than 180 days in the current year is is calculated for 1 year only.

HI Evey one
If all of you have some time my humble request is please read the below acts
01. Payment of Bonus ACT
02. Payment of Gratuity
03. Payment of Minimum Salaries & Wages Act
04. Payment of Provident Fund Act
05. Income Tax Act
Then you are good payroll administrator
I can always help you in this matter
Regards
Suresh