Hi Asish,
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?
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
Acknowledge(0)
Amend(0)
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 the Payslip/Papers. What should be the formula for the 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
Acknowledge(0)Amend(0)
Dear Ashish Option A is correct. Otherwise basic + da / 26 x 15 days wages x No of years service OK
From India, Coimbatore
Acknowledge(0)Amend(0)
From India, Coimbatore
Acknowledge(0)Amend(0)
Dear Sir,
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).
D. Gurumurthy
HR/IR Consultant
From India, Hyderabad
Acknowledge(0)Amend(0)
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).
D. Gurumurthy
HR/IR Consultant
From India, Hyderabad
Acknowledge(0)Amend(0)
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 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.
K S Sivakumaar
From India, Bangalore
Acknowledge(0)Amend(0)
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.
K S Sivakumaar
From India, Bangalore
Acknowledge(0)Amend(0)
Dear Asish Kindly calculate Gratuity as Basic Pay x 15 s No Of Years of Service / 26 Regards S.Deepak Trivedi
From India, Madras
Acknowledge(0)Amend(0)
From India, Madras
Acknowledge(0)Amend(0)
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
Acknowledge(0)Amend(0)
From India, Faridabad
Acknowledge(0)Amend(0)
hi according to me it should be calculated precisely i.e 65 months which is nothing but 5.5 yrs.
From India, Madras
Acknowledge(0)Amend(0)
From India, Madras
Acknowledge(0)Amend(0)
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
Acknowledge(0)Amend(0)
From India, Bangalore
Acknowledge(0)Amend(0)
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
Acknowledge(0)Amend(0)
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
Acknowledge(0)Amend(0)Join Our Community and get connected with the right people who can help. Our AI-powered platform provides real-time fact-checking, peer-reviewed insights, and a vast historical knowledge base to support your search.
Employee Benefits.doc
SBT Vs Asst. Labour Commissioner- Gratuity dismissed employee-LTS.PD F