HI, Can any one explain me the difference between Supper annuation and Gratuity and ho wit is calculated based on the Salary
From India, Hyderabad
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From India, Hyderabad
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Normally, superannuation implies the maximum age at which an employee is scheduled to retire. Suppose the age of superannuation is 58 years; it will mean that as soon as the employee reaches the age of 58 years, he will be retired.
Now comes the question of gratuity. Gratuity is paid for the good past services rendered by an employee. Nowadays, most employees are covered under the Payment of Gratuity Act. Gratuity is calculated with respect to the last drawn salary. The Gratuity Act prescribes gratuity at the rate of 15 days' salary for each completed year of service.
Suppose a person has put in 10 years of service and is drawing a salary of Rs. 10,000. He will get gratuity by multiplying 10,000 by 10. Furthermore, the product will be multiplied by 15/26.
Deepak Thukral
Chandigarh
From India, Chandigarh
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4Now comes the question of gratuity. Gratuity is paid for the good past services rendered by an employee. Nowadays, most employees are covered under the Payment of Gratuity Act. Gratuity is calculated with respect to the last drawn salary. The Gratuity Act prescribes gratuity at the rate of 15 days' salary for each completed year of service.
Suppose a person has put in 10 years of service and is drawing a salary of Rs. 10,000. He will get gratuity by multiplying 10,000 by 10. Furthermore, the product will be multiplied by 15/26.
Deepak Thukral
Chandigarh
From India, Chandigarh
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Hi Kalpana,
Superannuation is also called Voluntary Retirement from the services. This is mainly practiced in government or semi-government bodies.
Gratuity is paid after superannuation, resignation, or retirement from the service, but only to those who have rendered continuous service for 5 years or more. Gratuity is paid at a rate of 15 days of salary for every year the individual has served the organization.
The formula to calculate Gratuity Payable is: monthly wages last drawn / 26 * 15 * Number of years.
When calculating the salary for one month, we base it on 26 working days only. For example, if someone has served an organization for 10 years and their last drawn salary was Rs. 8000 per month, the Gratuity Payable would be: 8000 * 15 / 26 * 10 (years).
The maximum amount of gratuity payable should not exceed Rs. 3,50,000 in any case. This maximum limit applies even in the case of superannuation, where the gratuity paid would remain the same.
I hope this explanation clarifies things for you.
Regards,
Amit Seth.
From India, Ahmadabad
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Superannuation is also called Voluntary Retirement from the services. This is mainly practiced in government or semi-government bodies.
Gratuity is paid after superannuation, resignation, or retirement from the service, but only to those who have rendered continuous service for 5 years or more. Gratuity is paid at a rate of 15 days of salary for every year the individual has served the organization.
The formula to calculate Gratuity Payable is: monthly wages last drawn / 26 * 15 * Number of years.
When calculating the salary for one month, we base it on 26 working days only. For example, if someone has served an organization for 10 years and their last drawn salary was Rs. 8000 per month, the Gratuity Payable would be: 8000 * 15 / 26 * 10 (years).
The maximum amount of gratuity payable should not exceed Rs. 3,50,000 in any case. This maximum limit applies even in the case of superannuation, where the gratuity paid would remain the same.
I hope this explanation clarifies things for you.
Regards,
Amit Seth.
From India, Ahmadabad
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Gratuity calculation.doc
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