Gratuity - Salary Calculate

hi all, I wanna calculate my gratuity , here is my salary annexure for one month Basic:- 4000 hra :- 2000 sepical allo :- 4886 pls help me how we calculate gratuity for my 5 years working period!!! I will waiting for u r reply

Hi... Gratuity = [(Basic + DA) X 15 X No. of years of Service]/ (No. of working days in a month) So, in your case Gratuity = (4000 X 15X 5 ) / 26 = Rs.11538.46 For gratuity calculation HRA and other allowances is not considered. Truly Yours, Kumar.H.P

hi May i know what is this 15 in the formula. And how can the working days be 26 per month? can't 26 be varying? if no then wat about the public holidays? Pls clarify...

Dear Navya Gratuity is paid 15 days per month ''' According to gratuity act a month means and includes 26 days( excluding 4 weekly off variations not observed) Better views invited Vasanth

As per the gratuity act an employee is eligible for gratuity only if he has completed a contineous period of 5 or more years. Gratuity is payable for 15 days per year for a period the empoyee has worked in the organization. Also note that after the completion of 5 years every period in excess of 6 months is treated as one completed year. For example if an employee has worked for 6 years and 8 months than he will be eligible for a gratuity of 7 years. Gratuity is calculated as (Basic + DA)x 15 x no of years/26. Thanks Aditya Gupta

Dear all, I am working in Tamil nadu electricity board as Junior engineer.My salary structure is B.Pay = 6825 D.Pay= 3413 DA=6552 HRA=1100 CCA=300 Med.All=50. My total service is 11 years. 1)May i include D.pay for calculating Gratuity? 2)I calculated my gratuity as =(6825+3413+6552)*15*11/26 = 106552 Is this correct.please share your views regards

Dear If the payment of gratuity is to be received by you as per the Payment of Gratuity Act,1972 & not in accordance with any other Rules then you are correct in saying that D.Pay will be included for calculation purposes & you have also rightly calculated the amount of gratuity as per the provisions of this Act. Opinion Submitted as requested. Regards, R.N.Khola Skylark Associates, Gurgaon(Haryana) (Labour Law & Legal Consultants)

(Basic+DA) x 15 x No of Months of services spent in that company (i.e 3 years= 36 months)will use 36 months/26 working days of the month.

Gratuity = (Basic+DA)x 15 x 36 months(36 months = 3 years spent of services in the company)/26

Why we use 36 months= 3 years, if you analyze the ethic of salary, we are paid for a job done, either per day, week, month or year.

In the logic of gratuity, if you are paid i.e 1000 per month, and per year, you will be paid 1000 x 12 months of the year = 12000

We are not working once a year and next year again once, what about days, months of struggles and sacrifices going to your workplace. Don\'t you see all these are put away on this wrong calculation of gratuity using years of services than months of services spent in the company ?

This formula of gratuity is wrong (Basic+DA)x 15 x yeas of services/26 wrong

Let discuss about this one we use :

(Basic+DA)x 15 x Months of services spent in the company / 26 This is the right one.

Am I wrong ? please ! you can also send me your point the view.

My email : meetbayonika@gmail.com

Mr.N B PATRICE