Please Tell us the calculation of the Gratuity & Gratuity Act & any changes to the gratuity act
From India, Nasik
Acknowledge(0)
Amend(0)
From India, Nasik
Acknowledge(0)Amend(0)
Welcome to CiteHR
The calculation of gratuity is to be made as per Section 4 of the Payment of Gratuity Act, 1972. Changes in the definition of the employee and the gratuity payment limit have been noticed during the last twelve months.
Regards,
R.N.Khola
From India, Delhi
Acknowledge(0)Amend(0)
422The calculation of gratuity is to be made as per Section 4 of the Payment of Gratuity Act, 1972. Changes in the definition of the employee and the gratuity payment limit have been noticed during the last twelve months.
Regards,
R.N.Khola
From India, Delhi
Acknowledge(0)Amend(0)
The calculation formula you provided is as follows: (average last 3 months drawn basic X 15 X Number of years) / 26. However, it is important to note that the employee must complete a minimum of 5 years of continuous service in the organization. The current ceiling for gratuity is ₹10,00,000, whereas it was previously ₹3.5 lakh.
Regards,
Ramnath
From India, Bangalore
Acknowledge(0)Amend(0)
Regards,
Ramnath
From India, Bangalore
Acknowledge(0)Amend(0)
The formula for calculating gratuity is the last pay drawn by the employee divided by 26, multiplied by 15, and then multiplied by the number of completed years of service. The maximum gratuity payable is three lakh fifty thousand, but the Payment of Gratuity Act was amended, increasing the amount to exceed ten lakh rupees.
From India, Raipur
Acknowledge(0)Amend(0)
From India, Raipur
Acknowledge(0)Amend(0)
Gratuity Act Amendment India 2010 (Gratuity Calculation and Payment). This is good news for all employees, especially government employees. The Gratuity limit has been raised from 3.5 lacs to 10 lacs. This will give an advantage to both private and public sector employees. According to this new amendment, the 10 lacs on gratuity is tax-free. I have given the details of the new Gratuity Act Amendment India 2010 and Gratuity calculation below:
On Thursday, in the lead of PM Manmohan Singh, this decision was taken at a cabinet meeting. This proposal of the Labor and Employment Ministry has been given approval. Although many state governments have provided this type of advantage earlier, it is a better decision regarding the gratuity act to raise the Gratuity limit.
CCEA has taken a decision to open the 137 General Nursing and midwife schools to remove the scarcity of nurses and midwives. These schools will be established in Bihar, Chhattisgarh, Madhya Pradesh, UP, Uttarakhand, Rajasthan, Orissa, Himachal Pradesh, and others. An amount of 1370 crores will be spent on this planning.
For the Gratuity calculation, the gratuity calculation formula is:
1. Basic/26 x 15 days x number of years of service
OR
2. BASIC + DA (Last Pay drawn) X 15 /26 X No. OF YEARS WORKS
Gratuity is to be paid to any employee only if he provides service for a minimum time of five years at a stretch with his employer in the company. The Gratuity calculation is done based on the last average remuneration drawn and time in years served by an employee.
For more details, visit labour.nic.in/act/acts/RulesofPaymentOfGratuity.doc
From India, Mumbai
Acknowledge(0)Amend(0)
On Thursday, in the lead of PM Manmohan Singh, this decision was taken at a cabinet meeting. This proposal of the Labor and Employment Ministry has been given approval. Although many state governments have provided this type of advantage earlier, it is a better decision regarding the gratuity act to raise the Gratuity limit.
CCEA has taken a decision to open the 137 General Nursing and midwife schools to remove the scarcity of nurses and midwives. These schools will be established in Bihar, Chhattisgarh, Madhya Pradesh, UP, Uttarakhand, Rajasthan, Orissa, Himachal Pradesh, and others. An amount of 1370 crores will be spent on this planning.
For the Gratuity calculation, the gratuity calculation formula is:
1. Basic/26 x 15 days x number of years of service
OR
2. BASIC + DA (Last Pay drawn) X 15 /26 X No. OF YEARS WORKS
Gratuity is to be paid to any employee only if he provides service for a minimum time of five years at a stretch with his employer in the company. The Gratuity calculation is done based on the last average remuneration drawn and time in years served by an employee.
For more details, visit labour.nic.in/act/acts/RulesofPaymentOfGratuity.doc
From India, Mumbai
Acknowledge(0)Amend(0)
Dear All The calculation for Gratuity is as follows 26days divided by basic salary multiplied by 15 multiplied by number of years of service. Regards Octavious
From India, Mumbai
Acknowledge(0)Amend(0)
From India, Mumbai
Acknowledge(0)Amend(0)
Hi Yogesh,
Please find the gratuity calculations below:
((Last month's drawn basic + D.A) X 15 X Number of years completed years of service)/26
However, the employee must complete a minimum of 5 years of continuous service in an organization, and the recent ceiling is 10,00,000/- as earlier it was Rs. 3,50,000/-
Regards,
Madhu Mohan
Bangalore
From India, Bangalore
Acknowledge(0)Amend(0)
Please find the gratuity calculations below:
((Last month's drawn basic + D.A) X 15 X Number of years completed years of service)/26
However, the employee must complete a minimum of 5 years of continuous service in an organization, and the recent ceiling is 10,00,000/- as earlier it was Rs. 3,50,000/-
Regards,
Madhu Mohan
Bangalore
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.
Gratuity Act-Teachers-Ma dhya Pradesh.docx
Payment of Gratuity Act, 1972 & The Rules.ppt