How To Calculate Gratuity - Xls Download

How To Calculate Gratuity?

Gratuity is calculated as (Basic +DA)/26*15*number of completed years of service.
15 is 15 days wage for every comleted year of service.it is applicable after 5 continious years of service

Any employee working in an organisation for more than equal to 5 yrs is eligible for gratuity which is paid only on retirement or separation by means of resignation or termination, paid with his full n final account. it is calculated as (Basic)/26*15* no . of completed yrs of service , ie the employee is paid for 15days extra for every completed yr . if the part duration is more than 6 months it is taken as one full yr and if it is less thenit is treated null .

gratuity is calculated as under:
15/26 x pay (basic + DA)xno of years of service
Period over six mths is treated as one year

1. Gratuity = Monthly Salary (Basic +DA) x 15 days x No. of yrs. of service*
   26
2. *Completed years of service: More than 6 months service will be counted as full year of service i.e. 1 year 7 month will counted 2 years
3. Max. Gratuity payable under the Act is Rs. 3,50,000*/- * Please confirm it, This is exempted from tax if drawn after the retirement or leaving the job.

if i work less than 5 yrs in any company and join other company which also has gratuity can I get that
quote=Anurag Jain;588036]

1. Gratuity = Monthly Salary (Basic +DA) x 15 days x No. of yrs. of service*
   26
2. *Completed years of service: More than 6 months service will be counted as full year of service i.e. 1 year 7 month will counted 2 years
3. Max. Gratuity payable under the Act is Rs. 3,50,000*/- * Please confirm it, This is exempted from tax if drawn after the retirement or leaving the job.

[/quote]

Sumita,
No, There is an element of continuous service for 5 years with the same establishment.

Sumita,
They must returned it to the employee at the time of leaving; if they have made a suitable provision in their Balance Sheet; in this regard.
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Hi Anurag,
Can you please be more specific as to how can one get the deducted money back if he or she leaves the job before five years?
Regards,
Mehul

hi,
please clarify that how to caliculate gratuty when we are split the salary only in three parts. Ex. basic is 6500, Hra is 9900, Convey 9900.