what gratuity shoud be paid to a person who completed 10 years in work but attened 200 days in the 7th year then who many years gratuity should be paid to him?
From India, Calcutta
Acknowledge(0)
Amend(0)
From India, Calcutta
Acknowledge(0)Amend(0)
What gratuity should be paid to a person who completed 10 years of work but attended 200 days in the 7th year? Then, for how many years should gratuity be paid to him? Is it 10 years or (10-1) years? Please help me at the earliest you can, sir/madam.
From India, Calcutta
Acknowledge(0)Amend(0)
From India, Calcutta
Acknowledge(0)Amend(0)
Dear friend, see the payment of gratuity act first, ask your seniors in your organisation, with regards, shivendra
From India, Gurgaon
Acknowledge(0)Amend(0)
6From India, Gurgaon
Acknowledge(0)Amend(0)
Dear Vishal,
If one has 200 days out of 365 days (due to the mistake of an employee), the service will be accounted accordingly. That is, if he has 10 years of service, the service for gratuity will be 9.548 years, which will be rounded up to 10 years. Hence, he is entitled to get a gratuity amount of 10 x 15 / 26 x salary.
Abbas.P.S
From India, Bangalore
Acknowledge(0)Amend(0)
If one has 200 days out of 365 days (due to the mistake of an employee), the service will be accounted accordingly. That is, if he has 10 years of service, the service for gratuity will be 9.548 years, which will be rounded up to 10 years. Hence, he is entitled to get a gratuity amount of 10 x 15 / 26 x salary.
Abbas.P.S
From India, Bangalore
Acknowledge(0)Amend(0)
Good Morning to evryone If there is less than 240 days in a accorting year so it is right to employer gratuaty be deduct from that particulat year... Thanks Regards Bunti
From India, Velluru
Acknowledge(0)Amend(0)
From India, Velluru
Acknowledge(0)Amend(0)
Dear Bunti,
In my opinion, under the Payment of Gratuity Act, 1972, we are to consider the 'completed year of service,' which means continuous service of one year. We are not to consider the accounting year. For continuous service, one must go through Section 2A of this Act.
R.N.Khola
From India, Delhi
Acknowledge(0)Amend(0)
In my opinion, under the Payment of Gratuity Act, 1972, we are to consider the 'completed year of service,' which means continuous service of one year. We are not to consider the accounting year. For continuous service, one must go through Section 2A of this Act.
R.N.Khola
From India, Delhi
Acknowledge(0)Amend(0)
200 days shall be treated as 1 year as this period exceeds 6 months, i.e., 0.548 years, "provided that it is not due to any fault of the Employee." This is in accordance with Section 4, Subsection 2 of the Payment of Gratuity Act, 1972. Therefore, the Employee is eligible for Gratuity of 10 years.
Hope this is clear.
Regards,
Vishal
From India
Acknowledge(0)Amend(0)
Hope this is clear.
Regards,
Vishal
From India
Acknowledge(0)Amend(0)
Can I know the detailed calculation? I mean, on what basis did you provide this calculation? I also want to understand this as I don't have anyone in my HR department; I am the only person in the HR department in our company.
Calculation Formula
10x15/26x salary.
Thank you.
From India
Acknowledge(0)Amend(0)
Calculation Formula
10x15/26x salary.
Thank you.
From India
Acknowledge(0)Amend(0)
He will receive 10 years of gratuity to the best of my knowledge, unless he was suspended in the 7th year, i.e., when he only completed 200 days of service from the company's side.
Regards,
Kumar Sivesh
[Email Removed For Privacy Reasons]
From India, New Delhi
Acknowledge(0)Amend(0)
Regards,
Kumar Sivesh
[Email Removed For Privacy Reasons]
From India, New Delhi
Acknowledge(0)Amend(0)
Dear P. Itikirala,
For gratuity calculation, the formula is Number of years of service x last drawn salary x 15 / 26.
1. Number of years of service: If the service comprises completed years and a fraction of a year, the fraction has to be rounded to the full year. i.e. If the fraction is 6 months or below, it will be rounded down. And if it is above six months, it will be rounded up.
2. Last drawn salary: Practically, it is advisable to take the average salary of the preceding twelve months.
For example: Let the service be 26 years and the salary be Rs. 20,000. Gratuity calculation is = 26 x 20000 x 15 / 26 = Rs. 3,00,000.
Note: Now the ceiling limit for gratuity is Rs. 10,00,000. But if the employer wishes, he can give above Rs. 10,00,000. However, as per section 10(10) of the Income Tax Act, tax exemption is limited to Rs. 10,00,000.
Abbas.P.S
From India, Bangalore
Acknowledge(0)Amend(0)
For gratuity calculation, the formula is Number of years of service x last drawn salary x 15 / 26.
1. Number of years of service: If the service comprises completed years and a fraction of a year, the fraction has to be rounded to the full year. i.e. If the fraction is 6 months or below, it will be rounded down. And if it is above six months, it will be rounded up.
2. Last drawn salary: Practically, it is advisable to take the average salary of the preceding twelve months.
For example: Let the service be 26 years and the salary be Rs. 20,000. Gratuity calculation is = 26 x 20000 x 15 / 26 = Rs. 3,00,000.
Note: Now the ceiling limit for gratuity is Rs. 10,00,000. But if the employer wishes, he can give above Rs. 10,00,000. However, as per section 10(10) of the Income Tax Act, tax exemption is limited to Rs. 10,00,000.
Abbas.P.S
From India, Bangalore
Acknowledge(0)Amend(0)
For that 7th year no gratuity will be payable. So out of 10 years service period only 9 years gratuity will be calculated and paid.
From India, Rajsamand
Acknowledge(0)Amend(0)
From India, Rajsamand
Acknowledge(0)Amend(0)
Since there is a rule that for gratuity calculation, 190 days apply for underground jobs and 240 days apply for surface jobs. If physical presence, including holidays, does not exceed the specified days, the calculation for the year may be forfeited.
Can anyone provide further suggestions?
From India, Rajsamand
Acknowledge(0)Amend(0)
Can anyone provide further suggestions?
From India, Rajsamand
Acknowledge(0)Amend(0)
dear sir i want to ask that if an 1empoloy work for 10 days(in the 7th year) due to his own resion than what shoud we dodid the gratuity of the full 10 year he shoud get or of 9 years
From India, Calcutta
Acknowledge(0)Amend(0)
From India, Calcutta
Acknowledge(0)Amend(0)
why on the 7th year he attended the 200 days either the guy was on leave or service break clerify the same. sumit
From India, Ghaziabad
Acknowledge(0)Amend(0)
From India, Ghaziabad
Acknowledge(0)Amend(0)
Dear Tanveer Ahmed Khan,
Attendance of 190 days and 240 days are for minimum eligibility to get Gratuity, and this eligibility will be achieved upon completion of 5 years' service. Thereafter, if the fraction of a year is above six months, it will be rounded up to a full year. For 6 months or below, it will be rounded down, and accordingly, it will be neglected.
Dear Vishal,
The answer to your last query can be found in this message. If the fraction is below 10 days, it will be neglected, and 9 years will be taken into account.
From India, Bangalore
Acknowledge(0)Amend(0)
Attendance of 190 days and 240 days are for minimum eligibility to get Gratuity, and this eligibility will be achieved upon completion of 5 years' service. Thereafter, if the fraction of a year is above six months, it will be rounded up to a full year. For 6 months or below, it will be rounded down, and accordingly, it will be neglected.
Dear Vishal,
The answer to your last query can be found in this message. If the fraction is below 10 days, it will be neglected, and 9 years will be taken into account.
From India, Bangalore
Acknowledge(0)Amend(0)
Dear Vishal,
Calculation of gratuity is very simple. First of all, pick up his wage taken by him from the last three months. Most people are confused regarding the calculation of wages for gratuity. Wages - basic + DA.
Gratuity - (Wages * 15) / 26. You have to count one complete year above six months. For example, if it's 10 years and 200 days, which means approximately 6 and a half months, you need to count it as a whole year. So, you will count it as 11 years.
It is wrongly said that the gratuity limit is ₹1000000/-. Though it has been accepted by law, it is not publicly published. So, till now, the maximum limit is ₹350000/-.
Thanks,
Sandeep Kumar HR Executive BSc, MBA, LLB, DPM
From India, Delhi
Acknowledge(0)Amend(0)
Calculation of gratuity is very simple. First of all, pick up his wage taken by him from the last three months. Most people are confused regarding the calculation of wages for gratuity. Wages - basic + DA.
Gratuity - (Wages * 15) / 26. You have to count one complete year above six months. For example, if it's 10 years and 200 days, which means approximately 6 and a half months, you need to count it as a whole year. So, you will count it as 11 years.
It is wrongly said that the gratuity limit is ₹1000000/-. Though it has been accepted by law, it is not publicly published. So, till now, the maximum limit is ₹350000/-.
Thanks,
Sandeep Kumar HR Executive BSc, MBA, LLB, DPM
From India, Delhi
Acknowledge(0)Amend(0)
Gratuity Calculation Simplified
Calculation of gratuity is very simple. First of all, pick up the wage taken by the employee from the last three months. Most people are confused regarding the calculation of wages for gratuity.
Wages = Basic + DA
Gratuity = (Wages * 15 / 26) * No. of years
You have to count one complete year above six months.
Example: 10 years and 200 days means nearly about 6 and a half months. It means you have to count it as a whole year. You will count 11 years.
It is wrongly said that the gratuity limit is ₹1,000,000. It has been accepted by law, but it is not published publicly. So till now, its maximum limit is ₹350,000.
Regards,
Sandeep Kumar
HR-Executive
BSc, MBA, LLB, DPM
The Payment of Gratuity Act 1972 is amended to hike the limit to ₹1,000,000 w.e.f 24.05.2010. Accordingly, the Income Tax Act (section 10(10)) is also amended to exempt ₹1,000,000 towards gratuity from income tax.
Abbas.P.S
From India, Bangalore
Acknowledge(0)Amend(0)
Calculation of gratuity is very simple. First of all, pick up the wage taken by the employee from the last three months. Most people are confused regarding the calculation of wages for gratuity.
Wages = Basic + DA
Gratuity = (Wages * 15 / 26) * No. of years
You have to count one complete year above six months.
Example: 10 years and 200 days means nearly about 6 and a half months. It means you have to count it as a whole year. You will count 11 years.
It is wrongly said that the gratuity limit is ₹1,000,000. It has been accepted by law, but it is not published publicly. So till now, its maximum limit is ₹350,000.
Regards,
Sandeep Kumar
HR-Executive
BSc, MBA, LLB, DPM
The Payment of Gratuity Act 1972 is amended to hike the limit to ₹1,000,000 w.e.f 24.05.2010. Accordingly, the Income Tax Act (section 10(10)) is also amended to exempt ₹1,000,000 towards gratuity from income tax.
Abbas.P.S
From India, Bangalore
Acknowledge(0)Amend(0)CiteHR is an AI-augmented HR knowledge and collaboration platform, enabling HR professionals to solve real-world challenges, validate decisions, and stay ahead through collective intelligence and machine-enhanced guidance. Join Our Platform.
Less than 5 years service - Eligibility for payment of gratuity.pdf
Payment of Gratuity Act, 1972 & The Rules.ppt
THE PAYMENT OF GRATUITY ACT 1972.doc