can anybody help me with the concept and gratuity? also i want to know calculation of gratuity? does the calculation is same for service industry & manufacturing industry?
From India, Ahmedabad
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3From India, Ahmedabad
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Dear Aarti and other freshers, we would appreciate it if you could search the site or web for basic queries that have already been addressed. You can also use the sidebar to check the relevant topics discussed to gain better insight.
Gratuity Calculations
As for your query about gratuity calculations, it is 15 days' salary for every year of service rendered. Please note that although a person is eligible to claim the gratuity amount only after serving a minimum period of 5 years (except in cases of death or disablement), the employer is supposed to credit the gratuity amount year on year in an account. Gratuity is a safe and compulsory due on the employer to be given to the employee. Gratuity cannot be withheld except in certain situations as prescribed by the Gratuity Act.
The calculation is 15/26 * (Last drawn salary) * No. of years served.
Rounding Off Service Tenure
Note that after 5 years of service is rendered, we can thereafter round the service tenure to the nearest decimal by:
- If the person serves for up to 6 months, the years are rounded to a lower number (i.e., 5.5 years is rounded to 5 years).
- If the person serves more than 6 months, years are rounded to the upper number (i.e., 5.7 years is rounded to 6 years).
You can read further on:
1) https://www.citehr.com/445131-gratui...ice-years.html
2) https://www.citehr.com/166761-gratui...ic-salary.html
3) https://www.citehr.com/235334-confus...lculation.html
4) https://www.citehr.com/330656-need-i...nd-amount.html
Hope this will help you.
Regards
From India, Mumbai
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Gratuity Calculations
As for your query about gratuity calculations, it is 15 days' salary for every year of service rendered. Please note that although a person is eligible to claim the gratuity amount only after serving a minimum period of 5 years (except in cases of death or disablement), the employer is supposed to credit the gratuity amount year on year in an account. Gratuity is a safe and compulsory due on the employer to be given to the employee. Gratuity cannot be withheld except in certain situations as prescribed by the Gratuity Act.
The calculation is 15/26 * (Last drawn salary) * No. of years served.
Rounding Off Service Tenure
Note that after 5 years of service is rendered, we can thereafter round the service tenure to the nearest decimal by:
- If the person serves for up to 6 months, the years are rounded to a lower number (i.e., 5.5 years is rounded to 5 years).
- If the person serves more than 6 months, years are rounded to the upper number (i.e., 5.7 years is rounded to 6 years).
You can read further on:
1) https://www.citehr.com/445131-gratui...ice-years.html
2) https://www.citehr.com/166761-gratui...ic-salary.html
3) https://www.citehr.com/235334-confus...lculation.html
4) https://www.citehr.com/330656-need-i...nd-amount.html
Hope this will help you.
Regards
From India, Mumbai
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My Father is an govt bus driver... he rendered 28 yrs service and his last drawn salary 18,0000. 15/26*18000*28=290769.... may i know tis s right...........
From India, Chennai
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From India, Chennai
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According to me, The ideal calculation of gratuity 15*Avg of last 3 month basic salary*No. Year Serviced/26
From India, Rajkot
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From India, Rajkot
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Just for your information, if an employee continues to work in the same organization for more than 4.8 or 5 years, then they are eligible for gratuity. The gratuity calculation is done as follows: current basic/26*15*number of years. The gratuity amount limit is 10 lakh.
Thanks and Regards,
Mahendra Patole
From India, Mumbai
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Thanks and Regards,
Mahendra Patole
From India, Mumbai
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As per the experts view, it is ideal to count on average of last 3 month. and ya gratuity amount limit is 10 lack
From India, Rajkot
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From India, Rajkot
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Hai First confirm his last drawn basic salary is Rs 18000. Then calculate as: Current basic/26*15*no of years Regards Mano
From India, Coimbatore
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From India, Coimbatore
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Hi All, Is it compulsory to complete 240 physical present days in each year while calculating gratuity?
From India, Nagpur
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From India, Nagpur
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I don’t think so, you have to complete minimum 5 year in a organization than and than you are eligible for gratuity.
From India, Rajkot
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From India, Rajkot
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R Sir I have seen the calculation of Gratuity amount but it may difference of Govt. amount. So can u advice me whether it is correct or not?
From India
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From India
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Dear Yoghitha, Calculation of gratuity is as per law is follows: - Basic Salary X No. of year Service X 15 /26 . You could calculate as per the above. Surendra Shekhawat
From India, Jaipur
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From India, Jaipur
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Gratuity Eligibility
• Any person employed on wages/salary.
• At the time of retirement, resignation, or superannuation, an employee should have rendered continuous service of not less than five years.
• Payable without completion of five years only in the event of death or disablement.
This gratuity calculator is applicable only to an Indian employee.
Gratuity Calculation in India
Gratuity Calculation in India = [(Basic Pay + D.A) x 15 days x No. of years of service] / 26
From India, Chennai
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• Any person employed on wages/salary.
• At the time of retirement, resignation, or superannuation, an employee should have rendered continuous service of not less than five years.
• Payable without completion of five years only in the event of death or disablement.
This gratuity calculator is applicable only to an Indian employee.
Gratuity Calculation in India
Gratuity Calculation in India = [(Basic Pay + D.A) x 15 days x No. of years of service] / 26
From India, Chennai
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