Gratuity Claculation Help Required.

Friends,
Could you share how gratuity contribution is calculated by the employer?
Regards,
Shijit.

Dear shijit
there is no contirbution for Gratuity from the employee, and employer as to pay for his service in the company and plz find below the calculation of Gratuity
Basic+DAx15 days salary
----------------------- X No: of years Service
26
regards
Santhosh

Dear Shrijit,
Santhosh has given the formula for the withdrawl of Gratuity when the employee leaves the organisation after 5 or more years of service.
If you are asking how gratuity is calculated to be taken into consideration while calculating an employee's CTC amount then:
Gratuity = 4.81% of Basic
Regards,
Chanchal

Dear All,
In case if the employees has worked only for 5years 3 months how many years do you take in to consideration for calculating Gratutity and state the procedure for calculation under this circumstances?
Thanks,
AshaVinay

Hi
Some companies calculate this way on the service period of separting employee.
1) After full completion of 5 years
2) After completing 4 years and 8 months and less than 5 years as flat 5 years.
3) Completion of 5 years and 3 months, is taken as only 5 years.
Anything in fraction of 6 months be rounded to nearest integer beyond five years. The Gratuity Act has accepted 240 days service in the 5th year as eligibility for gratuity in full.
• Coverage fo all employees irrespective of designation, status, salary.
• Temporary employees are also included. Does not distinguish between temporary and permanent workmen.

Regards,
Chandru

dear shijit,
hi, the graduity calculation is : basic+da+vda/26*15*no of years (not less than 5 years)

dear shitij
gratuity calculation is
15/26*current basic* years=
e.g.
15/26*4800*6=16615 is correct, this formula is used in Dainik Bhaskar