I have joined on 12/12/2006 and will be released tentatively on 10/03/2012. There is HRA, but there is no DA as I can see from the payslip/papers. What should be the formula for the calculation of gratuity?
Gratuity Calculation Formula Options
A) [(Basic Pay + D.A) x 15 days x No. of years of service] / 26
B) 1/2 * Average monthly salary * Completed years of service
Regards,
Asish
From India, Calcutta
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1Gratuity Calculation Formula Options
A) [(Basic Pay + D.A) x 15 days x No. of years of service] / 26
B) 1/2 * Average monthly salary * Completed years of service
Regards,
Asish
From India, Calcutta
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Dear Ashish Option A is correct. Otherwise basic + da / 26 x 15 days wages x No of years service OK
From India, Coimbatore
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From India, Coimbatore
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In your case, as there is no DA, you will be eligible for gratuity on Basic only. The Gratuity Formula is: Basic salary / 26 days x 15 days x No. of years of service = ........... (gratuity amount).
Regards,
D. Gurumurthy
HR/IR Consultant
From India, Hyderabad
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Regards,
D. Gurumurthy
HR/IR Consultant
From India, Hyderabad
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The formula for calculating gratuity is as follows: Last drawn basic salary/26*15*No. of completed years of service. To become eligible, a person should have 5 continuous years of service in the same organization. Even 4 years and 11 months will not be taken for gratuity calculation. But after 5 years, 6 months and above are considered as a year. For example, if a person has an experience of 6 years and 6 months, then it will be taken as 7 years.
Hope your queries are answered.
Friends, please revert back.
Regards,
K S Sivakumaar
From India, Bangalore
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Hope your queries are answered.
Friends, please revert back.
Regards,
K S Sivakumaar
From India, Bangalore
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Dear Asish Kindly calculate Gratuity as Basic Pay x 15 s No Of Years of Service / 26 Regards S.Deepak Trivedi
From India, Madras
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From India, Madras
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Hi K S Sivakumaar U r right , U removed my confusion also. If one employee have completed 5yrs and 5 months then how many years would be counted for Gratuity calculation? 5 or 6?
From India, Faridabad
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From India, Faridabad
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hi according to me it should be calculated precisely i.e 65 months which is nothing but 5.5 yrs.
From India, Madras
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From India, Madras
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Hi, it should be treated as 5 years only. If it is 5 yrs and 6 months then it will be 6 years.
From India, Bangalore
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From India, Bangalore
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Dear K. S. Sivakumaar, I have one doubt. As you said, for gratuity, even 4 years 11 months is not applicable. However, I have read that the minimum requirement is 4 years and 240 days for gratuity eligibility. Could you please explain this discrepancy?
Thank you.
From India, Gurgaon
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Thank you.
From India, Gurgaon
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