Dear All, this is the first time that I have had the chance to release someone's gratuity. Since I have no experience in this field, I seek your help.
Colleague's Gratuity Details
One of my colleagues joined this company in May 2008 and has resigned from his position. His notice period has a shortfall of 5 days, ending on 1st October 2013. His last drawn gross monthly salary would be INR 57,820/-, including a Basic of INR 20,410/- and other allowances as per his salary structure.
Please let me know what his amount of gratuity should be and the process for applying for/getting the gratuity amount.
Thanks in advance,
Sonali
From India, New Delhi
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15Colleague's Gratuity Details
One of my colleagues joined this company in May 2008 and has resigned from his position. His notice period has a shortfall of 5 days, ending on 1st October 2013. His last drawn gross monthly salary would be INR 57,820/-, including a Basic of INR 20,410/- and other allowances as per his salary structure.
Please let me know what his amount of gratuity should be and the process for applying for/getting the gratuity amount.
Thanks in advance,
Sonali
From India, New Delhi
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Dear Sir, I have mentioned everything in detail in my post, including the separating person's date of joining. He has completed 5 years and 4 months of continual service in our company. Secondly, I am not the one who is leaving the company. It's my colleague, and I have the responsibility to settle all his dues.
Regards, Sonali
From India, New Delhi
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Regards, Sonali
From India, New Delhi
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The gratuity calculation formula is as follows: W x Y x 15/26, where W equals the last wage drawn, i.e., basic + DA, and Y equals the number of completed years of continuous service. For the calculation, six months or less should be ignored, and more than six months should be counted as a full year.
Gratuity Calculation Details
Specifically, the calculation is based on 15 days of salary over 26 working days in a month. Therefore, the formula for gratuity calculation is as follows:
Gratuity = (Last basic + DA) x 15/26 x number of service years
Your calculated gratuity amount is 20410 x 15/26 x 5 = 58875/-.
From India, Ahmedabad
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Gratuity Calculation Details
Specifically, the calculation is based on 15 days of salary over 26 working days in a month. Therefore, the formula for gratuity calculation is as follows:
Gratuity = (Last basic + DA) x 15/26 x number of service years
Your calculated gratuity amount is 20410 x 15/26 x 5 = 58875/-.
From India, Ahmedabad
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While making the payment of gratuity, please check the salary details in the gratuity insurance and then calculate the gratuity (i.e., whether salary + HRA + allowances, etc., are included or only the salary amount has been insured). The formula is salary x 15 x no. of years of service / 26.
Thanks,
VK.Sood
From India, Ludhiana
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Thanks,
VK.Sood
From India, Ludhiana
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Dear Sonali, For the purpose of gratuity calculation, only Basic and Dearness Allowance(if part of the salary structure) should be considered.
From India, Bangalore
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From India, Bangalore
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Dear Divya, I thank you for the clarification. I would be glad if you can also throw some light on my doubts regarding Gratuity Insurance (please refer to my previous post).
From India, New Delhi
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From India, New Delhi
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Gratuity insurance policy is very much mandatory. If your company's salary structure does not have "DA," then it need not be considered. All other extra allowances that you have mentioned in your post should not be counted for gratuity calculation.
Thanks,
Anand G
From India, Bangalore
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Thanks,
Anand G
From India, Bangalore
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SBT Vs Asst. Labour Commissioner- Gratuity dismissed employee-LTS.PD F
Gratuity calculation.doc