Gratuity Calculation [Thread 246044]

Wanted Formula of Gratuity Calculation

Hi Pawar,
here u go..
Last drawn basic Sal x 15 / 26 x No of years of Service
15 refers to the half month salary and
26 refers to the No of working days in the month (Assuming 8 working hrs per day)
Regds
Bharath Bhushan

Dear Member,
Formula under which of the Act/ Rules/ service rules ( Central or State).
With Regards,
R.N.Khola



QUOTE=pawarmohan;1104076]Wanted Formula of Gratuity Calculation[/QUOTE]

Dear nb85,
Gratuity is an award for his/her long& meritorious services with the firm & governed by Payment of Gratuity Act 1972,
An employee is eligible for gratuity only if he/she is in services in company for five years continuously atleast.
Gratuity can be calculated as "Basic salary x15/26 x years spend in services",
In case of death/disablement while on duty,continuous services for 5 years is not necessory.
for any further query you can mail me @ [Login to view]
Regards,
Neha

gratuity is paid 15 days on every completed year of service.
- first, one should have completed 5 years of continuous service
- To arrive 15 days of salary,
(Basic+DA)/26= one day salary, multiply with 15 for getting 15 days salary
(irrespective of number of days in a month, it should be divided by 26, as ruled by the Hon'ble Supreme Court of India)
- this amount is multiplied by no of years of service put in by the employee
(6 months or ore is to be considered as 1 year, less than 6 months to be neglected)
BUT THE PRIMARY CONDITION IS ONE SHOULD HAVE COMPLETED 5 YEARS OF SERVICE)
NAGARAJ

Respected Nagraj,
Is there any compliace that worker must have to work 240 days every year to be eligible for gratuity?
Thanks & Regards,
Ravinder Vardhman

hi pawar,
last drawn salary(basic+da) * year of service * 15 / 26
B'regards
from
sumit kumar saxena
9899669071, 0120-4131277

gratuity calculation- basic wages/salary/26x15xno of complected years of services.
Example
say basic wages/salary= rs 5000/-
no of complected years of services-5 years
5000/26x15x5=rs 14423/-gratuity.
It becomes applicable after continuous 5 years of services
in case of death while in service it is not necessary to complete 5 yeras of continuous services.
Gratuity is payable under gratuity act.and it is complesory.there is no issue of loss and profit to the organisation.
If it is not payable as per act within the time then 12 % interest is applicable
thanks
s.n.yelgawakar

Hi Neha
I know the formula, we are using it but in my org. there is a CTC concept, but in my org. they will pay us after 5 years of services they are deducting it after 6 months probation period.
We are using this formula- basic salary/26*15 and divided by the months in which we have to collect it from the employee.
Can you please tell is it the rite way? I dont think its rite.
Regards
Neha