Gratuity Calculation Confusion: Can Someone Guide Me Through the Process?

Hi all,

Please help me. Guide me on how to calculate gratuity.

Regards

Calculate gratuity as follows:

Last Basic Drawn x 15 x Number of Completed years of Service. 26

Note: More than six months of service is to be taken as 1 year.

Hope this will help you.

Mahal, good afternoon.

Kindly refer to the bare act for information on gratuity.

With Regards,

Prof. Rajesh W.

Pune - 411033

Dear Mahal,

The gratuity calculation depends upon your company's policy. Your company has already made a tie-up with LIC, and you have to calculate according to the guidelines of the policy.

The second method is according to The Payment of Gratuity Act 1972, i.e.,

Wage last drawn (Basic+DA)/26*15*number of years of service rendered by the employee.

The minimum service for the calculation of gratuity is 5 years, and it is not mandatory in cases of death.

In the above formula, 15 means 15 days. If the company is interested in giving beyond 15 days, that is their wish.

Hello,

Gratuity Payable = 15 days wages x No. of completed years of services (Part of a year in excess of 6 months in a year).

15 days wages are calculated as = monthly wages last drawn / 26 X 15.

I hope this will help.

Ashish Gaur

Hi Mahal,

Just go with the simple formula:

(Basic + D.A * 15) / 26 * Years of service

Regards,
Rajesh

Hi all,

How do you calculate gratuity for daily wage employees and seasonal employees?

Regards,
Beno