Hi friends, I am working in a limited company as an Assistant Manager in the Accounts & Administration department. I need your help with the following query:
Gratuity Calculation Query
If a person retires in the middle of the month, when the Dearness Allowance (DA) is variable, should Gratuity be calculated based on Basic Salary + Previous month's DA or Basic Salary + Current month's DA?
Please assist me with this matter. Thank you.
From India, Thana
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Gratuity Calculation Query
If a person retires in the middle of the month, when the Dearness Allowance (DA) is variable, should Gratuity be calculated based on Basic Salary + Previous month's DA or Basic Salary + Current month's DA?
Please assist me with this matter. Thank you.
From India, Thana
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It would be calculated as per the previous month's Basic + D.A x 15/26 x No. of years of service (minimum qualifying service put up is 5 years).
The maximum amount payable is 3.50 Lakhs.
Hope this clarifies your query.
From India, Visakhapatnam
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995The maximum amount payable is 3.50 Lakhs.
Hope this clarifies your query.
From India, Visakhapatnam
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Gratuity is to be calculated on the last drawn salary (Basic + DA), and the maximum amount of gratuity as per the Payment of Gratuity Act is Rs 10 lakhs. However, any higher amount can be paid if the employer is willing to do so. The additional amount over and above what is stated above will be taxable in the hands of the employee and the employer.
Regards,
Madhu.T.K
From India, Kannur
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Regards,
Madhu.T.K
From India, Kannur
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Dear Hari, Gratuity = Last monthly Wages x 15 x years of completed service Note:- (i) Wages = Basic Wages + current DA (ii) Maximum gratuity payable = 10, 00,000/-
From India, Kochi
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From India, Kochi
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Max. amount Its 10lks for central government and 5 lakhs for state Govt. More than 10lkhs also permissible, provided that amount will be taxed by the IT department.
From India, Calcutta
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From India, Calcutta
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Clarification on Gratuity Calculation
Soumik's interpretation of the maximum amount of gratuity seems to be incorrect since the Payment of Gratuity Act is not applicable to government employees. It is ₹10 lakhs for all employees who are covered by the said Act.
Madhu.T.K
From India, Kannur
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Soumik's interpretation of the maximum amount of gratuity seems to be incorrect since the Payment of Gratuity Act is not applicable to government employees. It is ₹10 lakhs for all employees who are covered by the said Act.
Madhu.T.K
From India, Kannur
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Payment of Gratuity Act, 1972 & The Rules.ppt
Gratuity calculation.doc