Gratuity Computation

hi all,
I need a clarification for Gratuity computation. The scenario is as follows
An employee joined on 10 jan 2005 and he met with an accident on 30 april 2012 and resigned on 15-july- 2012. So when compute his gratuity, there is a split. ie.salary upto 30 april 2012 (rs.15000) and upto 15 july (9500). so how to calculate his gratuity?. is there any need to calculate the last 3 month gratuity?. Since when rounding of it maps to 0.
Regards,
Sivajith S.

The Payment of Gratuity Act 1972 Says,
1. Gratuity shall be payable to an employee on the termination of his employment after he has rendered continuous service for not less than five years.
2. Provided that the completion of continuous service of five years shall not be necessary where the termination of the employment of any employee is due to death or disablement
3. For every completed year of service or part thereof in excess of six months, the employer shall pay gratuity to an employee at the rate of fifteen days' wages based on the rate of wages last drawn by the employee concerned.
In this case, you are required to calculate the gratuity based on the last drawn wages. Employee resigned on 15.07.2012 and gratuity has to be calculated based on this date. Here, I would like to know that how his salary comes from Rs. 15,000/- to Rs. 9,000/- and what will be his basic & DA (if applicable)

hi,
The condition is when he joined his designation is say 'A' and after that he can't do the same work due to any reason and the company changed his designation to 'B'.
Now you may be clear......
Regards,
Sivajith S.

In this case, you may calculate his Gratuity based on his last drawn basic+DA
As per DOJ & DOL, he was worked 7 years, 6 months, 5 days. i.e. say 8 years.
If we consider his last drawn basic+DA is Rs. 9,000/-, the calculated amount will be Rs. 9000/26*15*8 = 41,539/-.
Hope this will help you.

Dear I came to understand by sivajith query is that,After met with an accident, due to temporarily disabilement his salary might reduced to 60%of his wages. That is the reason, his salary is 9000 instead of 15000 at the time of resignation. If I am not wrong.
So please give the clarity based on above point. If an employee actual salary is 15000 and let say his service is 5years, and immediately after 3months he met with an accident, due to temporarily disabilement his salary become 60%of his current salary which equals to 9000, and he resigned after 5years 3months. Now the question is Gratuity calicualtion is
either 9000/26*15*5years? or 15000/26*15*5years?

what ever the case it may be.......as per the payment of Gratuity Act, the Gratuity amount will be calculated based on the last drawn basic+DA irrespective of the changes of the salary.

Farmula for gratuity calculation as per Gratuity Act -1972 is as : Basic ( last drawn) + DA ( if any)*15*completed service years/26 = gratuity amount .
Pawan Thakur

Hi Dear Sivajith,
You should calculate Gratuity on 9000/-. not on 15000/-. Last drawn salary ( Basic + DA)
Biju

Respected Sirs,
If any employee would be worked for 5 years 7 months and 3 days, then how to calculate gratuity. Do we consider the service in round figure or on actual service..
Basic + DA
.................. x 15 days x 5 years, 7 months and 3 days
26
Please help for calculation..
Regards,
Rahul

15 days salary for every completed year of service componenet for grt calculation is basic +da=vda
madhavan
hr rane evl