Gratuity - 4.81%

Dear Sir, As per the act, Eligibility for gratuity is minimum 5 years, and calculation for gratuity entitlement as under :- Basic + DA*15*No of years service /26 For Ex:- Basic=Da is - Rs 8000/- (Last Month Drawn) No of years service is - 6 Years Gratuity payable amount is Rs 8000*15*6/26= 27692=00 Regards Ramu Hegde

Dear rajeev Whether to compensate the gratuity while with in 05 yrs of service its depends upon the company .

Hi rajeev If an employee does not complete 5 years of service in a single organisation and leaves his services with in 5 years of period then he is not liable to get gratuity and the employer is not liable to make his gratuity payment. Mohan Rao Manager HR

The salary for the purposes of Gratuity as per Payment of Gratuity Act, is, average Basic + DA paid during the last 10 months x15 / 26 x no. of years of service. Regards, Guruprasanna B.K.

Dear Guruprasanna B.K. Plz clarify whether you are telling us the gratuity calculation method under The Payment Of Gratuity Act, 1972 or in any other scheme. Regards, R.N.Khola

hi, the 4.81% is used to book the gratuity liability and to reflect the notional value for the Liability to the company on account of Gratuity.
The idea of using 4.81 % is to ascertain that what would be the gratuity if any employee leaves.

Hello Sir
I would like to know when we calculate Gratuity, Should we include VDA?
(I`m Calculating on Basic & DA)
Kindly confirm.
Regards
Sushil