Confused With Gratuity Calculation Formula

Hi,
I have joined on 12/12/2006 and will be released tentatively on 10/03/2012. There is HRA but there is no DA as I can see from Payslip/Papers. What should be the formula for calculation of gratuity?
A) [ (Basic Pay + D.A) x 15 days x No. of years of service ] / 26
B) 1/2 * Average monthly Salary * Completed Years of Service
Regards,
Asish

Dear Ashish
Option A is correct.
Otherwise
basic + da / 26 x 15 days wages x No of years service
OK

Dear Sir,
In your case as there is no DA, you will be eligible for gratuity on Basic only.
The Gratuity Formula : Basic salary / 26days x 15days x No. of years service =........... (gratuity amount)
D.Gurumurthy
HR/IR Consultant

Hi Ashish,
The formula for calculating gratuity is as follows:
Last drawn basic salary/26*15*No.of completed years of service.
To become eligible, a person should have 5 continuous years of service in the same organisation. Even 4 years and 11 months will not be taken for gratuity calculation.
But after 5 years, 6 months and above is considered as a year. For example if a person is having an experience of 6 years and 6 months, then it will be taken as 7 years.
Hope your queries are answered.
Friends, please revert back.
K S Sivakumaar

Dear Asish
Kindly calculate Gratuity as Basic Pay x 15 s No Of Years of Service / 26
Regards
S.Deepak Trivedi

Hi K S Sivakumaar
U r right , U removed my confusion also.
If one employee have completed 5yrs and 5 months then how many years would be counted for Gratuity calculation?
5 or 6?

hi
according to me it should be calculated precisely i.e 65 months which is nothing but 5.5 yrs.

Hi,
it should be treated as 5 years only. If it is 5 yrs and 6 months then it will be 6 years.

Dear K S Sivakumaar,
I have one doubt as you said for gratuity even 4 year 11 month is not applicable.
But for the same I have read that minimum requirement is 4 years and 240 days for gratuity eligibility. Please Explain it.

In our organisation we do not have DA but have meal allowance which is considered for calculation of PF. Kindly advise if meal allowance + basic is to be considered for arriving gratuity amount