kindly brief me about graduitiy calculation of terminated employee because i m a new user kindly suggest me some tips to calculate graduitiy
From India, Aurangabad
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From India, Aurangabad
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Hi, Please find the attached file for Graduity calculator. Kindly adjust the % according to your country. Atif
From Pakistan
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19From Pakistan
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gratuity = ((((basic + da) / 26 days of the month x )15 (half month salary) )x number of years completed) eligibility is 5 years of continus service
From India, Mumbai
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From India, Mumbai
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The Payment of Gratuity Act specifies that an employee must have completed 5 years of continuous service to be eligible for gratuity. Within the 5th year, the employee should have worked for 240 days without any breaks.
Even if the employee has retired, been separated due to resignation or termination, or passed away, they are entitled to receive full and final settlement of gratuity.
Gratuity Calculation
The calculation is straightforward: (BASIC + DA / 26 days in a month) x 15 x Number of completed years of service. (15 represents the 15 days' wage for each completed year of service)
The maximum amount of gratuity that can be paid is 10 lakhs, while the minimum is 3.5 lakhs.
In response to your query, how many years of service did the terminated employee have?
Regards
From India, Visakhapatnam
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Even if the employee has retired, been separated due to resignation or termination, or passed away, they are entitled to receive full and final settlement of gratuity.
Gratuity Calculation
The calculation is straightforward: (BASIC + DA / 26 days in a month) x 15 x Number of completed years of service. (15 represents the 15 days' wage for each completed year of service)
The maximum amount of gratuity that can be paid is 10 lakhs, while the minimum is 3.5 lakhs.
In response to your query, how many years of service did the terminated employee have?
Regards
From India, Visakhapatnam
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Dear Mr. Sandeep Kedare, welcome to the new world of CiteHR! The Payment of Gratuity Act requires a continuous service of 5 years by any employee who is eligible for gratuity. The employee should have 240 days of continuous service in the 5th year without any break. Even if the employee is retired, separated due to resignation or termination, or deceased, they should be paid in full and final settlement. The calculation is very simple: (BASIC + DA / 26 days in a month) x 15 x the number of completed years of service. [15 is the 15 days' wage for every completed year of service]. The maximum gratuity payable is 10 lakhs.
As per your query, how many years of service does the terminated employee have? Dear Sharmila, I think you are mistaken when saying that the minimum gratuity is 3.5 lakhs; there is no fixed minimum level. 3.5 lakhs was the earlier maximum limit, which is now raised to 10 lakhs. One more clarification: separation due to resignation or termination before the continuous service of 4 years and 240 days does not entitle any employee to gratuity. Also, once an employee becomes eligible, i.e., after completing 4 years and 240 days of service, any term from the fifth year onwards more than 6 months, be it 7 months or 8 months, shall be considered as a full year for the calculation of gratuity purposes, and any term less than 6 months would be dropped and not considered for gratuity calculation.
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From India, New Delhi
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As per your query, how many years of service does the terminated employee have? Dear Sharmila, I think you are mistaken when saying that the minimum gratuity is 3.5 lakhs; there is no fixed minimum level. 3.5 lakhs was the earlier maximum limit, which is now raised to 10 lakhs. One more clarification: separation due to resignation or termination before the continuous service of 4 years and 240 days does not entitle any employee to gratuity. Also, once an employee becomes eligible, i.e., after completing 4 years and 240 days of service, any term from the fifth year onwards more than 6 months, be it 7 months or 8 months, shall be considered as a full year for the calculation of gratuity purposes, and any term less than 6 months would be dropped and not considered for gratuity calculation.
Regards
From India, New Delhi
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Dear Mr. Kamal,
Yes, the maximum limit is 10 lakhs as per the new Gratuity Act. However, regarding the 4 years and 240 days, referring to the Act, it is enough that one has a service of about 240 days in the preceding 12 months. It is not really necessary that they should have completed one year's service. Considering the definitions of continuous service in the Payment of Gratuity Act and the ID Act, it indicates that an employee rendering service of 4 years and 10 months is considered to have completed 5 years of continuous service under section 24(2) and is eligible for gratuity. Clarifying further: 4 years and 8 months (240 days) is considered as 1 year. Basically, the gratuity component is considered based on the joining date of the employee until leaving, and should be considered as 5 years.
Regards,
[Name Removed For Privacy Reasons]
From India, Visakhapatnam
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Yes, the maximum limit is 10 lakhs as per the new Gratuity Act. However, regarding the 4 years and 240 days, referring to the Act, it is enough that one has a service of about 240 days in the preceding 12 months. It is not really necessary that they should have completed one year's service. Considering the definitions of continuous service in the Payment of Gratuity Act and the ID Act, it indicates that an employee rendering service of 4 years and 10 months is considered to have completed 5 years of continuous service under section 24(2) and is eligible for gratuity. Clarifying further: 4 years and 8 months (240 days) is considered as 1 year. Basically, the gratuity component is considered based on the joining date of the employee until leaving, and should be considered as 5 years.
Regards,
[Name Removed For Privacy Reasons]
From India, Visakhapatnam
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Payment of Gratuity Act, 1972 & The Rules.ppt
THE PAYMENT OF GRATUITY ACT 1972.doc