This is the Gratuity calculation file for calculation of Gratuity while doing full and final settlement of employee service.
From India, Pune
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2From India, Pune
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Hi Sachin, the calculation of gratuity as per the formula is very simple: the last salary drawn x 15/26 x the number of years of service (if the last year of service is more than 6 months, it should be rounded off to one year).
Payment of Gratuity Act, 1972
Section: 2 - Definitions.
[8] [(r) "superannuation", in relation to an employee, means the attainment by the employee of such age as is fixed in the contract or conditions of service at the age on the attainment of which the employee shall vacate the employment;]
(s) "wages" means all emoluments which are earned by an employee while on duty or on leave in accordance with the terms and conditions of his employment and which are paid or are payable to him in cash and includes dearness allowance but does not include any bonus, commission, house rent allowance, overtime wages, and any other allowance.
The 'Salary' for the purpose of gratuity calculation should include Basic Plus DA.
Also, read this link for income tax liability on gratuity amount and other details:
https://www.citehr.com/610737-curren...lakh-20-a.html
From India, Bangalore
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Payment of Gratuity Act, 1972
Section: 2 - Definitions.
[8] [(r) "superannuation", in relation to an employee, means the attainment by the employee of such age as is fixed in the contract or conditions of service at the age on the attainment of which the employee shall vacate the employment;]
(s) "wages" means all emoluments which are earned by an employee while on duty or on leave in accordance with the terms and conditions of his employment and which are paid or are payable to him in cash and includes dearness allowance but does not include any bonus, commission, house rent allowance, overtime wages, and any other allowance.
The 'Salary' for the purpose of gratuity calculation should include Basic Plus DA.
Also, read this link for income tax liability on gratuity amount and other details:
https://www.citehr.com/610737-curren...lakh-20-a.html
From India, Bangalore
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Gmail - Full & Final Settlement Calculation sheet -16556 - Umesh Chand.pdf
Full n final settlement.doc