Dear All,
I have a doubt in Excel for Gratuity Calculation. Is it correct that if anyone completes 5 years and 7 months, we calculate 6 years for the Gratuity Calculation, and if someone completes 10 years and 4 months, we calculate 10 years for the Gratuity Calculation?
Now, my question is, I need the exact formula for the above situation.
Thank you & Regards,
pm44
From India, Ahmadabad
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1I have a doubt in Excel for Gratuity Calculation. Is it correct that if anyone completes 5 years and 7 months, we calculate 6 years for the Gratuity Calculation, and if someone completes 10 years and 4 months, we calculate 10 years for the Gratuity Calculation?
Now, my question is, I need the exact formula for the above situation.
Thank you & Regards,
pm44
From India, Ahmadabad
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Dear Member,
Please go through section 4 of The Payment of Gratuity Act, 1972 for your query.
With Regards,
R.N.Khola
From India, Delhi
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Please go through section 4 of The Payment of Gratuity Act, 1972 for your query.
With Regards,
R.N.Khola
From India, Delhi
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Sir Pls advise how is the Gratuity calculation done ,is it taxable it is pais when an employee leaves and has worked for atleast 5 years, is the same taxable. Thanks Upasana
From India, Gurgaon
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From India, Gurgaon
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Till date, gratuity up to 3.5 lakh for the private sector and Rs. 10 lakh for the government sector is not taxable. The government is also planning to increase the limit from 3.5 lakh to 10 lakh for private sector employees. You can also search the forum for other questions; you will find numerous answers to your queries.
Best regards,
Sanjay
From India, Delhi
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Best regards,
Sanjay
From India, Delhi
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Sir,
If I have 15 years of service and have 6 months' approved leave but without pay for 6 months for a particular time during that period, will my number of completed years be considered 14 years ? That is, what is the status of leave without pay? is it considered a part when calculating completed number od years ?
Gaurav
From India, Hyderabad
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If I have 15 years of service and have 6 months' approved leave but without pay for 6 months for a particular time during that period, will my number of completed years be considered 14 years ? That is, what is the status of leave without pay? is it considered a part when calculating completed number od years ?
Gaurav
From India, Hyderabad
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Solution for Gratuity Calculation
Many companies are conducting the aforementioned calculation, such as 5 years and 3 months, which means gratuity is calculated for 5 years. If the organization has a union, they must provide the exact completion period for the employer.
One year of gratuity = 15 days of basic pay.
One month of gratuity = 15 / 12 or 1.25.
Now, you can calculate for the exact remaining months.
Basic pay = 6500.
Number of years of experience = 6 years and 8 months.
One year = (6500 / 26) * 15 = 3750 or one month = (6500 / 26) * 1.25 = 312.50.
One year = 12 * 312.50 = 3750.
6 years of gratuity = 6 * 3750 = 22500.
8 months of gratuity = 8 * 312.50 = 2500.
Gratuity for 6 years and 8 months is 25000 (or 6 years and 8 months can be considered as 7 years).
Formula = ((Basic + Dearness Allowance) * number of years of experience) * 15 / 26 = 6500 * 7 * 15 / 26 = 26250. In this case, the management provided more money to the employee.
From India, Salem
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Many companies are conducting the aforementioned calculation, such as 5 years and 3 months, which means gratuity is calculated for 5 years. If the organization has a union, they must provide the exact completion period for the employer.
One year of gratuity = 15 days of basic pay.
One month of gratuity = 15 / 12 or 1.25.
Now, you can calculate for the exact remaining months.
Basic pay = 6500.
Number of years of experience = 6 years and 8 months.
One year = (6500 / 26) * 15 = 3750 or one month = (6500 / 26) * 1.25 = 312.50.
One year = 12 * 312.50 = 3750.
6 years of gratuity = 6 * 3750 = 22500.
8 months of gratuity = 8 * 312.50 = 2500.
Gratuity for 6 years and 8 months is 25000 (or 6 years and 8 months can be considered as 7 years).
Formula = ((Basic + Dearness Allowance) * number of years of experience) * 15 / 26 = 6500 * 7 * 15 / 26 = 26250. In this case, the management provided more money to the employee.
From India, Salem
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Gratuity - Taxation Issues.docx