Dear Sir/Madam/HR Professionals, Kindly provide me with the latest gratuity calculation. One of my colleagues has recently resigned and has completed 5 years and 3 months in the current organization. Kindly advise if we have to calculate and pay him the gratuity for 5 years or 6 years. I am confused about whether to pay him for 5 years or 6 years as he has completed more than 5 years of continuous service.
Thanks and warm regards, Vinayak Sonawane
From India, New Delhi
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9Thanks and warm regards, Vinayak Sonawane
From India, New Delhi
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Dear Vinayak, In this case the Calculation for gratuity would be : Current Basic/26*15*5 There will be no payment for extra 03 months.
From India, New Delhi
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From India, New Delhi
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Gratuity = (last drawn Basic+DA)/26 x 15 days x No. of yrs. of service regards bhav narayana asst manager hr
From Singapore, Singapore
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From Singapore, Singapore
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Hi, Post completing 5 years in the organization, every 6 months what an employee complete’s in rounded & considered as 1 year.
From India, Bangalore
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From India, Bangalore
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You have to consider only 5 years of service for calculating gratuity. If he had served for more than six months, then you can consider it as 6 years. However, in this case, he has served for only 3 months after 5 years of service. Therefore, you have to calculate for 5 years only.
Regards,
Kumar
From India, Bangalore
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Regards,
Kumar
From India, Bangalore
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Hai Vinayak, in these case you consider only 5 years. you can take more then six months at rounded of one year. Suresh
From India, Madras
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From India, Madras
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Eligibility Criteria for Gratuity
Regarding your query on the above subject, please refer to Section 4 for the eligibility criteria for an employee to claim gratuity. This means that any employee who has completed 5 years of continuous service at the time of resignation or retirement, or upon reaching the age of superannuation, is eligible. The calculation should be based on 15 days' wages for every completed year of service or part thereof exceeding six months. In your case, the employee is eligible for 5 years only.
Regards,
P.V. Rama Rao
[Phone Number Removed For Privacy Reasons]
From India, Chennai
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Regarding your query on the above subject, please refer to Section 4 for the eligibility criteria for an employee to claim gratuity. This means that any employee who has completed 5 years of continuous service at the time of resignation or retirement, or upon reaching the age of superannuation, is eligible. The calculation should be based on 15 days' wages for every completed year of service or part thereof exceeding six months. In your case, the employee is eligible for 5 years only.
Regards,
P.V. Rama Rao
[Phone Number Removed For Privacy Reasons]
From India, Chennai
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Dear All,
Our company has opted for the LIC group gratuity scheme. Are there any alternative options for the employer to maintain their employee gratuity scheme? Any suggestions in this regard would be appreciated. Please clarify.
Regards,
R. Udayakumar
From India, Madras
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Our company has opted for the LIC group gratuity scheme. Are there any alternative options for the employer to maintain their employee gratuity scheme? Any suggestions in this regard would be appreciated. Please clarify.
Regards,
R. Udayakumar
From India, Madras
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since the person has worked for 5yrs 3months. 5yrs should be considered for 6yrs if person has worked for more 6 months then it is rounded off to 6yrs
From India, Hyderabad
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From India, Hyderabad
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Gratuity calculation.doc