Gratuity Calculation Formula
Please take a look at the formula below:
15 days' salary for each completed year = (Basic Salary + DA) / 26 Days * 15 Days. Gratuity = 15 days' salary * total completed years of service. The rule is that service should be continuous, and the person is eligible to receive gratuity only after retirement.
From India, Nasik
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Please take a look at the formula below:
15 days' salary for each completed year = (Basic Salary + DA) / 26 Days * 15 Days. Gratuity = 15 days' salary * total completed years of service. The rule is that service should be continuous, and the person is eligible to receive gratuity only after retirement.
From India, Nasik
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Dear Mr. Manilam, Sorry, your gratuity calculation sheet is incorrect. According to your ABC service, only 4 years, 5 months, and 29 days of service are eligible for gratuity. Your calculation is correct, but the service format is wrong. Please check.
Regards, Guru Synergies Castings Ltd.
From India, Visakhapatnam
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Regards, Guru Synergies Castings Ltd.
From India, Visakhapatnam
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Dear All, Can anyone one provide us a clear picture of graduity calculation.... Im totally confused by many replies....
From India, Madras
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1From India, Madras
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Your formula for the calculation of gratuity is okay. However, there are certain points to consider while creating a formula. One is the eligibility criteria. The minimum years of completed service for eligibility is five. If an individual has completed 4 years and 6 months of service, they will also be eligible.
The second point to note is that when calculating the total number of years of service, the days of service after completed years are not considered proportionately. The service in the last year will be rounded off to one year if the employee completes more than six months of service in that year. Otherwise, those days will not be counted. This aspect must be taken into consideration when formulating the formula to ensure accurate results.
Regards,
Babusivaprasad
From India, Kochi
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The second point to note is that when calculating the total number of years of service, the days of service after completed years are not considered proportionately. The service in the last year will be rounded off to one year if the employee completes more than six months of service in that year. Otherwise, those days will not be counted. This aspect must be taken into consideration when formulating the formula to ensure accurate results.
Regards,
Babusivaprasad
From India, Kochi
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Gratuity Calculation Formula
The actual formula for Gratuity is your last drawn basic + DA/26 * 15 * number of years worked in the organization. If you have completed 4 years and 6 months, then it is considered as 5 years for the calculation of gratuity.
Regards,
Surjeet Kaur
From India, Mumbai
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The actual formula for Gratuity is your last drawn basic + DA/26 * 15 * number of years worked in the organization. If you have completed 4 years and 6 months, then it is considered as 5 years for the calculation of gratuity.
Regards,
Surjeet Kaur
From India, Mumbai
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The gratuity calculation sheet is totally correct, but I also agree with you that according to tenure, ABC was not eligible. However, it is just a calculation sheet/method to calculate the gratuity. Five years is the minimum time period to claim for gratuity.
Regards,
Manilam
From India, Delhi
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Regards,
Manilam
From India, Delhi
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Delhi Minimum Wages w.e.f. 01.10.2015.pdf