Hi, I was working with a private company for 5.2 years. In my CTC, some amount X is offered annually as retirals. In the offer letter, they have mentioned that it is given under the Gratuity Act of 1972. Until now, after 3 months, they haven't finalized the amount of gratuity. How will this X amount be calculated? Will it be considered as DA? If not, will they divide X by 12 and add it to the basic and multiply by *15/26*5? This could make a huge difference.
Example Calculation
For example, if the Retiral bonus is 50,000 per annum, which can be considered as DA, and the basic is 25,000, the calculation would be: (25,000 + 50,000) * 15/26 * 5, then the gratuity amount will be 2,16,346/-.
If the Retiral bonus is considered as basic, ((25,000 + 50,000) / 12) * 15/26 * 5 --- 84,134/-, which differs by around 1,30,000/-.
If they don't consider any retirals, then the gratuity amount is 72,115/-. Having 50,000/year in CTC gives me only 12,000 for 5 years of service. How is this possible? Then my CTC should be CTC-50,000 only.
Please help me determine which calculation is correct.
From India, Bengaluru
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Example Calculation
For example, if the Retiral bonus is 50,000 per annum, which can be considered as DA, and the basic is 25,000, the calculation would be: (25,000 + 50,000) * 15/26 * 5, then the gratuity amount will be 2,16,346/-.
If the Retiral bonus is considered as basic, ((25,000 + 50,000) / 12) * 15/26 * 5 --- 84,134/-, which differs by around 1,30,000/-.
If they don't consider any retirals, then the gratuity amount is 72,115/-. Having 50,000/year in CTC gives me only 12,000 for 5 years of service. How is this possible? Then my CTC should be CTC-50,000 only.
Please help me determine which calculation is correct.
From India, Bengaluru
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Dear Mr. Rakesh,
Generally, basic salary plus DA will be taken into account as the salary for Gratuity. This salary multiplied by the years of service (in this case, 5) multiplied by 15/26 will be the Gratuity amount. If the Gratuity is calculated as 12000, then the salary taken into account is 4160.
Abbas.P.S
From India, Bangalore
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530Generally, basic salary plus DA will be taken into account as the salary for Gratuity. This salary multiplied by the years of service (in this case, 5) multiplied by 15/26 will be the Gratuity amount. If the Gratuity is calculated as 12000, then the salary taken into account is 4160.
Abbas.P.S
From India, Bangalore
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According to my CTC, the basic salary is 25,000, and Retirals is 50,000. So, I couldn't get the final figure for gratuity. I am asking, which one is correct? 84k or 2.1 lac? So that I can move this issue into the labor court.
From India, Bengaluru
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From India, Bengaluru
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