No Tags Found!


shasanaf
4

hi I would like to know about the calculation of gratuity. what is the formula for calculating the gratuity if an employee compleated less than one year with the organisation.
From United Kingdom, Aberdeen
dkraj
3

Hi
For availing Gratutity, an employee should completed Min 5 years of continuous service in an organisation. For employees below 5 years of service, no employer is liable to provide Gratuity....
More over Gratuity means:an Exgratia amount ie, an amt given in a gratitude from the employer for any employee towards his good service rendered for the company..
Raj

From India, Madras
dkraj
3

Hi
For availing Gratuity, an employee should completed Min 5 years of continuous service in an organisation. For employees below 5 years of service, no employer is liable to provide Gratuity....
More over Gratuity means:an Exgratia amount ie, an amt given in a gratitude from the employer for any employee towards his good service rendered for the company..
Raj

From India, Madras
Shringarika Srivastava
6

The formula for the calculation of the gratuity amount is (((Basic+D.A.)*15)/26)*No. of years of service. Kindly revert if the formula is not clear!! Cheers! Shringarika.

rajesh7286254
6

Payment Of Gratuity Act, 1972

Applicability

Eligibility

Benefits

Calculation of Gratuity

Penal Provisions



--------------------------------------------------------------------------------



Applicability



1. Every factory (as defined in Factories Act), mine, oilfield, plantation, port and railway.

2. Every shop or establishment to which Shops & Establishment Act of a State applies in which 10 or more persons are employed at any time during the year end.

3. Any establishment employing 10 or more persons as may be notified by the Central Government.

4. Once Act applies, it continues to apply even if employment strength falls below 10.



--------------------------------------------------------------------------------



Eligibility



1. Any person employed on wages/salary.

2. At the time of retirement or resignation or on superannuation, an employee should have rendered continuous service of not less than five years,

3. In case of death or disablement, the gratuity is payable, even if he has not completed 5 years of service.



--------------------------------------------------------------------------------



Benefits



1. The quantum of gratuity is to be computed at the rate of 15 days wages (7 days wages in case of seasonal establishments) based on rate of wages last drawn by the employee concerned for every completed year of service or a part thereof exceeding 6 months.

2. The total amount of gratuity payable shall not exceed the prescribed limit.

3. In case where higher benefit of gratuity is available under any gratuity scheme of the Co., the employee will be entitled to higher benefit



--------------------------------------------------------------------------------



Calculation of Gratuity



1. Gratuity = Monthly Salary x 15 days x No. of yrs. of service

26

2. Max. Gratuity payable under the Act is Rs. 3,50,000/- (w.e.f. 24-9-1997)



--------------------------------------------------------------------------------



Penal Provisions



Nonpayment of gratuity payable under the Act is punishable with imprisonment up to 2 years (minimum 6 months) and/or fine up to RS 20,000/-. Other contravention/offenses attract imprisonment up to 1 year and/or fine up to RS 10,000.

From India, Coimbatore
Shringarika Srivastava
6

Hi Rajesh Thats a very good presentation of the answer. It’ll be really helpful for the one who is a layman on this topic. Cheers! Shringarika

Helen Raj
1

Hi,
Gratuity will be applicable for employees who have completed 5 years of continuous service and above in the same organization.
Formula for calculating gratuity is
((Basic + DA)*15/26)*No. of years of service which includes completion of 6 months of service also.
Regards
M. Helen


tandeep.saggu
2

Hi Rajesh,
Kindly help me in clarifying my doubts on the above stated formulla.
According to the formulla stated above the gratuity of an employee earning 15 k per month say after 5 yrs would be Rs. 1125000(15000*15*5= 1125000)
But he would be payed just 3.5 lacs as gratuity as Max. Gratuity payable under the Act is Rs. 3,50,000/- (w.e.f. 24-9-1997)
Kindly clarify
Regards,
Tandeep

From India, Delhi
vijaychangra@gmail.com
How the SL/CL/EL leaves calculate & how to give these to workers in the company. Whether we can give sc/cl combined for 5 days lease regularly
From India, Delhi
azeem.growthorbit
suppose in any organisation the saturday & sundat is off then the formula remains the same for calculating gratuity. azeem
From India, Delhi
Community Support and Knowledge-base on business, career and organisational prospects and issues - Register and Log In to CiteHR and post your query, download formats and be part of a fostered community of professionals.






Contact Us Privacy Policy Disclaimer Terms Of Service

All rights reserved @ 2024 CiteHR ®

All Copyright And Trademarks in Posts Held By Respective Owners.