Hi,
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 Payslip/Papers. What should be the formula for calculation of gratuity?
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
1I 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 Payslip/Papers. What should be the formula for calculation of gratuity?
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
Dear Ashish Option A is correct. Otherwise basic + da / 26 x 15 days wages x No of years service OK
From India, Coimbatore
From India, Coimbatore
Dear Sir,
In your case as there is no DA, you will be eligible for gratuity on Basic only.
The Gratuity Formula : Basic salary / 26days x 15days x No. of years service =........... (gratuity amount)
D.Gurumurthy
HR/IR Consultant
From India, Hyderabad
In your case as there is no DA, you will be eligible for gratuity on Basic only.
The Gratuity Formula : Basic salary / 26days x 15days x No. of years service =........... (gratuity amount)
D.Gurumurthy
HR/IR Consultant
From India, Hyderabad
Hi Ashish,
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 organisation. Even 4 years and 11 months will not be taken for gratuity calculation.
But after 5 years, 6 months and above is considered as a year. For example if a person is having 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.
K S Sivakumaar
From India, Bangalore
Dear Asish Kindly calculate Gratuity as Basic Pay x 15 s No Of Years of Service / 26 Regards S.Deepak Trivedi
From India, Madras
From India, Madras
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
From India, Faridabad
hi according to me it should be calculated precisely i.e 65 months which is nothing but 5.5 yrs.
From India, Madras
From India, Madras
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
From India, Bangalore
Dear K S Sivakumaar,
I have one doubt as you said for gratuity even 4 year 11 month is not applicable.
But for the same I have read that minimum requirement is 4 years and 240 days for gratuity eligibility. Please Explain it.
From India, Gurgaon
I have one doubt as you said for gratuity even 4 year 11 month is not applicable.
But for the same I have read that minimum requirement is 4 years and 240 days for gratuity eligibility. Please Explain it.
From India, Gurgaon
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Gratuity calculation.doc
Gratuity Calculation tool.xls