Dear All, I am working as a HR in pvt company i want clear calculation for gratuity Pl help me to do..
From India, Madras
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4From India, Madras
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Dear Friend, For Gratuity Calculation, the below equation is taken: Gratuity = (Last Drawn Basic + DA) x 15 x Nos. of Year / 26 Hope this will help you. Cheers.
From India, Delhi
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From India, Delhi
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Calculation for Gratuity
W x Y x 15/26
where W = Last Wage drawn, i.e., basic + DA
Y = Number of completed years of continuous service (six months or less to be ignored and more than six months to be counted as a full year).
15 = 15 days' salary
26 = Number of working days in a month.
Maximum Limit: Rs. 3.5 lakhs.
From India, Ahmedabad
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W x Y x 15/26
where W = Last Wage drawn, i.e., basic + DA
Y = Number of completed years of continuous service (six months or less to be ignored and more than six months to be counted as a full year).
15 = 15 days' salary
26 = Number of working days in a month.
Maximum Limit: Rs. 3.5 lakhs.
From India, Ahmedabad
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Hi simple formula as mentioned by others too current Salary/26*15* no of years worked. Salary could be anything as per the company’s policy but not less than minimum wages.
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hello every one i see the all post their all formula is correct but noted that an employee complete the service 5 years then he/she will entitled for gratuity. Sanjay Gupta
From India, Ranchi
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From India, Ranchi
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Correction on Gratuity Calculation
All the learned followers above have provided their formula for deriving one day's wage by dividing the monthly salary by 26. I would like to make a correction here. The last wage should be calculated by dividing the monthly Basic + DA + any other allowance that is part of the salary/wages of the individual employee (for example, in some organizations, doctors receive Non-Practicing Allowance, i.e., NPA, which is considered part of their Basic for all purposes). Therefore, it should first be determined whether the employee is paid based on 26 days' wages per month or @ 30 days. This variation typically occurs with daily-rated and monthly-rated employees.
Additionally, the limit has been increased to Rs. 10 Lakhs since September 2009.
Formula for Gratuity Calculation
- One day wage last drawn = Total (Basic + DA + any other allowance as mentioned above) / 26 or 30 (depending on the scenario) ----- w
- Period of service = n years
- Gratuity payable for = y days (n years x 15)
- Gratuity amount = w x y limited to Rs. 10 Lakhs.
I hope this makes it easier to calculate.
Regards,
AK Jain
From India, New+Delhi
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All the learned followers above have provided their formula for deriving one day's wage by dividing the monthly salary by 26. I would like to make a correction here. The last wage should be calculated by dividing the monthly Basic + DA + any other allowance that is part of the salary/wages of the individual employee (for example, in some organizations, doctors receive Non-Practicing Allowance, i.e., NPA, which is considered part of their Basic for all purposes). Therefore, it should first be determined whether the employee is paid based on 26 days' wages per month or @ 30 days. This variation typically occurs with daily-rated and monthly-rated employees.
Additionally, the limit has been increased to Rs. 10 Lakhs since September 2009.
Formula for Gratuity Calculation
- One day wage last drawn = Total (Basic + DA + any other allowance as mentioned above) / 26 or 30 (depending on the scenario) ----- w
- Period of service = n years
- Gratuity payable for = y days (n years x 15)
- Gratuity amount = w x y limited to Rs. 10 Lakhs.
I hope this makes it easier to calculate.
Regards,
AK Jain
From India, New+Delhi
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