Dear Sir, Please guide us what the maximum salary limit for gratuity payment? Thanking You, Akhilesh
From India, Mumbai
Acknowledge(0)
Amend(0)
5From India, Mumbai
Acknowledge(0)Amend(0)
There is no wages limit in it . It gives on Last Basic + DA . Gratuity limit is 10 Lcs .
From India
Acknowledge(2)
Amend(0)
From India
Acknowledge(2)Amend(0)
Dear, Gratuity is calculated on last drawn salary (Basic), formula is last basic+da/26days*15days*number of years completed=gratuity.
From India, Pune
Acknowledge(1)Amend(0)
From India, Pune
Acknowledge(1)Amend(0)
In addition to Fogat and Amar's answers, I would like to emphasize that for the payment of gratuity, a minimum of 5 years of service is compulsory, and in each year, the number of working days should not be less than 240.
Thanks and Regards,
Sumit Kumar Saxena
From India, Ghaziabad
Acknowledge(1)Amend(0)
Thanks and Regards,
Sumit Kumar Saxena
From India, Ghaziabad
Acknowledge(1)Amend(0)
Dear Sumit, If employee has not worked for 240 days suppose he has worked only 230 days in any one year out of five year so is he not eligible for gratuity?
From India, Pune
Acknowledge(1)Amend(0)
From India, Pune
Acknowledge(1)Amend(0)
Dear Sir, Please guide about the meaning of last basic salary used in above.
From India, Bhopal
Acknowledge(1)Amend(0)
From India, Bhopal
Acknowledge(1)Amend(0)
Dear All, Maximum gratuaty= 3.5 L. Formula=Basic + D.A./26*15*no.of years. Regards, Ashish 09469489001
From India, Velluru
Acknowledge(0)Amend(0)
From India, Velluru
Acknowledge(0)Amend(0)
gratuity calculation formula is last drawn basic+da*26*15*no of years worked
From India, Delhi
Acknowledge(1)Amend(0)
From India, Delhi
Acknowledge(1)Amend(0)
Do private company pay "Gratuity" ? I’ve heard only in the government jobs but never heard in any private companies.
From India, Noida
Acknowledge(0)Amend(0)
From India, Noida
Acknowledge(0)Amend(0)
I would like to know the present formulae to calculate the gratuity applicable to an employee, worked for ten years, for a self-financing college, run by a trust, in coimbatore, tamilnadu
From India, Coimbatore
Acknowledge(0)Amend(0)
From India, Coimbatore
Acknowledge(0)Amend(0)
Well, Gratuity amount is limited to 10 lacs but there’s no salary limit defined for the eligibility for gratuity.
From India, Lucknow
Acknowledge(0)Amend(0)
From India, Lucknow
Acknowledge(0)Amend(0)
Thank you for your quick response to my query regarding the gratuity formula. I would like to understand the formula that needs to be followed as per labor rules for the encashment of non-availed earned leave. I have been employed at a Trust in Coimbatore, Tamil Nadu.
Once again, thank you.
Regards,
Raman
From India, Coimbatore
Acknowledge(0)Amend(0)
Once again, thank you.
Regards,
Raman
From India, Coimbatore
Acknowledge(0)Amend(0)
Gratuity Calculation Formula
Gratuity is calculated on the last drawn salary (Basic). The formula is: last basic + DA / 26 days * 15 days * number of years completed = gratuity.
Dear All, "DA" means Dearness Allowance. In my case, the Basic is Rs. 6500/-, but there is no information on Dearness Allowance in the Appointment Letter and Payslip as well. If there is no Dearness Allowance for me, what is the calculation? Is it Basic / 26 days * 15 days * number of years completed = gratuity? (Is it correct?) Why are 26 days and 15 days used in the formula?
My Gratuity Contribution is Rs. 312/- for the month.
Waiting for your reply, Seniors.
Regards
From Czech Republic, Prague
Acknowledge(0)Amend(0)
Gratuity is calculated on the last drawn salary (Basic). The formula is: last basic + DA / 26 days * 15 days * number of years completed = gratuity.
Dear All, "DA" means Dearness Allowance. In my case, the Basic is Rs. 6500/-, but there is no information on Dearness Allowance in the Appointment Letter and Payslip as well. If there is no Dearness Allowance for me, what is the calculation? Is it Basic / 26 days * 15 days * number of years completed = gratuity? (Is it correct?) Why are 26 days and 15 days used in the formula?
My Gratuity Contribution is Rs. 312/- for the month.
Waiting for your reply, Seniors.
Regards
From Czech Republic, Prague
Acknowledge(0)Amend(0)
Dear Bunti Please note that the maximum gratuity amount is 10 lakhs. Manokavi
From India, Coimbatore
Acknowledge(0)Amend(0)
From India, Coimbatore
Acknowledge(0)Amend(0)
Understanding Gratuity Calculation
26 days counted as working days in a month means if you divide your last basic + DA by 26 days, you will get one day's salary. As per the Gratuity Act, per year, you get 15 days' salary. This means you can calculate it like this: your basic + DA / 26 = one day of gratuity, then multiply by 15 days to get one year of gratuity, and then multiply by the number of years you have completed in your service.
Regards.
From India, Pune
Acknowledge(0)Amend(0)
26 days counted as working days in a month means if you divide your last basic + DA by 26 days, you will get one day's salary. As per the Gratuity Act, per year, you get 15 days' salary. This means you can calculate it like this: your basic + DA / 26 = one day of gratuity, then multiply by 15 days to get one year of gratuity, and then multiply by the number of years you have completed in your service.
Regards.
From India, Pune
Acknowledge(0)Amend(0)
Dear All, Pl guide me If an employee completed 4 years,six month and one day then is he/she entitled for gratuity. Regards, Manas
From India, Delhi
Acknowledge(0)Amend(0)
From India, Delhi
Acknowledge(0)Amend(0)
Dear all Can anyone tell me the eligibility for the entitlement of gratuity to any employee and what is the role of age factor. Vivek
From India, New Delhi
Acknowledge(0)Amend(0)
From India, New Delhi
Acknowledge(0)Amend(0)
Dear Manokavi, Can you explain in detail the gratuity amount (10 lacs).. Vivek
From India, New Delhi
Acknowledge(0)Amend(0)
From India, New Delhi
Acknowledge(0)Amend(0)
Gratuity Calculation Guidelines
There is no maximum limit for gratuity calculation.
Entitlement
- Section 2(e): On completion of five years of service, except in the case of death or disablement.
Qualifying Period
- On rendering 5 years of service through termination, resignation, or retirement.
Wages Definition
- Wages mean Basic + DA.
Wages for Calculation
- Section 2(s): At 15 days' wages for every completed year as if the month comprises 26 days at the last drawn salary.
- Formula: (Basic + DA / 26) * 15 * Number of completed years of service.
Total Ceiling
- Rs. 10,00,000
From India, Kota
Acknowledge(0)Amend(0)
There is no maximum limit for gratuity calculation.
Entitlement
- Section 2(e): On completion of five years of service, except in the case of death or disablement.
Qualifying Period
- On rendering 5 years of service through termination, resignation, or retirement.
Wages Definition
- Wages mean Basic + DA.
Wages for Calculation
- Section 2(s): At 15 days' wages for every completed year as if the month comprises 26 days at the last drawn salary.
- Formula: (Basic + DA / 26) * 15 * Number of completed years of service.
Total Ceiling
- Rs. 10,00,000
From India, Kota
Acknowledge(0)Amend(0)CiteHR is an AI-augmented HR knowledge and collaboration platform, enabling HR professionals to solve real-world challenges, validate decisions, and stay ahead through collective intelligence and machine-enhanced guidance. Join Our Platform.
Doctors on Part Time payment-Gratuit y eligibility- Gujarat High Court.docx
Less than 5 years service - Eligibility for payment of gratuity.pdf
Payment of Gratuity Act, 1972 & The Rules.ppt