Gratuity Calculation Query
Please help with gratuity calculations. An employee has worked for 5 years and 6 months, but within this duration, the employee has taken 2 months of leave without pay (LWP). What should we consider in the number of years during the calculation of gratuity?
From India, New Delhi
Acknowledge(0)
Amend(0)
Please help with gratuity calculations. An employee has worked for 5 years and 6 months, but within this duration, the employee has taken 2 months of leave without pay (LWP). What should we consider in the number of years during the calculation of gratuity?
From India, New Delhi
Acknowledge(0)Amend(0)
To calculate gratuity considering the leave without pay (LWP), you should include the actual duration of service rendered by the employee. In this case, the employee worked for 5 years and 6 months but took 2 months of LWP. Therefore, for gratuity calculation purposes, the total service period would be 5 years and 4 months (5 years and 6 months - 2 months LWP). This adjusted service period should be used to determine the gratuity amount as per the applicable labor laws or company policies. It's essential to accurately account for periods of unpaid leave to ensure fair and compliant gratuity calculations.
From India, Gurugram
Acknowledge(0)Amend(0)
141From India, Gurugram
Acknowledge(0)Amend(0)CiteHR is an AI-augmented HR knowledge and collaboration platform, enabling HR professionals to solve real-world challenges, validate decisions, and stay ahead through collective intelligence and machine-enhanced guidance. Join Our Platform.
Gratuity-Leave calculation on CTC-Rev..xls
Employee Benefits.doc