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can anybody tell me about the calculation of Gratuity:wacko: Regards Ashok
From India , Delhi

Entitlement : anyone who has completed 5 years in the establishment.
After 5 years, upto 6 months should be counted as previous year and after 6 months to be counted as next year. For eg. 7years 4 months to be counted as 7 years and 7 years 9months to be counted as 8 years.
Calculation: 15 days of Salary entitlement for each completed year of service.
Hope this helps you
From India , Mumbai
Anyone (Employee) who completes 5 years of continuous service in the establishment is entitles for Gratuity as per the Gratuity Act,1972.

After completion 5 years, upto 6 months should be counted as previous year and after 6 months to be counted as next year. For eg. 6 years 5 months to be counted as 6 years and 6 years 8 months to be counted as 8 years.

Calculation: 15 days of Salary entitlement for each completed year of service which is calculated as 15/26 X Basic=DA XNo.of years of service.(while calculating the Gratuity we take 26 days only in the month)

For Ex: If anybody completes 6 yeras of service and his Basic+DA is Rs. 5000/-

15/26X5000X5 =



Hope this helps you

Anyone (Employee) who completes 5 years of continuous service in the establishment is entitles for Gratuity as per the Gratuity Act,1972.

After completion 5 years, upto 6 months should be counted as previous year and after 6 months to be counted as next year. For eg. 6 years 5 months to be counted as 6 years and 6 years 8 months to be counted as 8 years.

Calculation: 15 days of Salary entitlement for each completed year of service which is calculated as 15/26 X Basic=DA XNo.of years of service.(while calculating the Gratuity we take 26 days only in the month)

For Ex: If anybody completes 6 yeras of service and his Basic+DA is Rs. 5000/-

15/26X5000X6 =Rs.17308

Hope this clears you about Gratuity.

ThanQ
From India , Hyderabad
I want to confirm one thing, If company wants then it can provide gratuity after 3 years as well. Kindly confirm if its true?? :confused:
Thanks in advance.
Prabhjot S. Kashyap

<link outdated-removed>

From India , Delhi
What are the calculation for gratuity if someone’s Joining Date is 01-10-2001 & Resignation date 01-09-2008. Please help, calculate complete gratuity. PARESH
From India , Ahmadabad
dear paresh
date of joining 01-10-2001 and resignation date 01-09-2008
total 6 years and 10 months, so gratuity calculate 7 years
dear paresh
total years 6 and 9 months
so gratuity payable 7 years
navi
From India , Delhi
There is not any boundation on company that company will pay gratuity only after completion of 5 years if it wants it can pay before 5 years but the same can be happened only if the Company have thier own trust.
other wise the gratuity will be paid as per the Gratuity Act 1965.
your's friend
Rahul Bhardwaj
From India , Delhi
It is entirely left on company’s discretion to give gratuity to anyone regardless of the ceiling on wages or number of years worked. But they cannnot deprive anyone legally entitled to it.
From India , Mumbai
Hi,
Anyone (Employee) who completes 5 years of continuous service in the establishment is entitles for Gratuity as per the Gratuity Act,1972.
After completion 5 years, upto 6 months should be counted as previous year and after 6 months to be counted as next year. For eg. 6 years 5 months to be counted as 6 years and 6 years 8 months to be counted as 8 years.
Calculation: Last month drawn salary*15/26*No. of Yrs Service
From India , Madras
however if the company is governed by payment of Gratuity act, if 5 years continuous service is there the maximum amount of gratuity will be Rs.350000 only
From India , Madras
hi, Will the gratuity paid for employees who have not completed 5years will be TAX exempted? Mohandas
From India , Bangalore
Hi all,
I keep observing the conversation of HR doubts
& clarification in the citehr network, its really helped me in all critical suitation , i sincerely thankful to everyone of your knowledge shared.
Here i am taking an opportunity to introduce myself as Senior HR generalist with growing an ADVERTISING company in mumbai. i have an doubt in formating payslip for our company , i would like to know is there any format for the monthly payslip. if there please share with me.
Thanks in advance. Awaiting for your valuable reply.
Rgds,
Sug
Hi friends,
5 yrs of Pvt company in the market can bring the gratuity scheme for the employee, if so kindly let me know the formula to calculate the gratuity for employees.
Thanx in advance.
From India , Thana
sir kindly clarify the followng:-
1) if a casual employee is eligible for gratuity
2) if a regular employee expired within 5 years is he eligible for gratuity
3) if any employee resigned, removed, after 5 years are they eligible
From India , Vijayawada
Payment of Gratuity Act, 1972

Object: It is an Act to provide for a scheme for the payment of gratuity to employees engaged in factories, mines, oilfields, plantations, ports, railway companies, and shops or other establishments.

Applicability: Any Employer of the above noted establishments where 10 or more persons are employed or were employed on any day of the preceding 12 months is liable to pay gratuity to its employees. Once the Act becomes applicable, it continues even if the number of employees falls below ten.

Entitlement: Gratuity is payable to an employee (nominee - in case of death of employee) who has rendered continuous service of five years or more on his termination of employment, superannuation, retirement or resignation. Completion of continuous service of five years is not necessary where the termination of employment is due to death of disablement.

Calculation: W x Y x 15/26 where W = Last Wage drawn i.e., basic + DA
Y = number of completed years of conyinuous service (six months or less to be ignored and more than six months to be counted as full year.
15 = 15 days salary
26 = No. of working days in a month.

Maximum Limit: Rs.3.5 lacs. (w.e.f 24-09-1997)

Time Limit for application to employer: Employee has to make an application in Form-I to his employer within 30 days from the date of gratuity becomes payable.



Whom to apply in case of non-payment by employer or dispute: Application in Form-N is to be made to the "Controlling Authority" i.e., the Assistant Labour Commissioner or the Labour-cum-Conciliation Officer of the concerned area within 90 days on the expiry of 30 days period of the employer.

Appeal: An aggrieved party can file an appeal to the Appellate Authority i.e Additional Labour Commissioner within 60 days of the decision of the Controlling Authority.
From India , Bangalore
you know gratuity due after 5 year of regular service under one employer.
formula is Present basic divided by 26 ( days of month calculated as 26)
then multiply by 15 of every year . 15days salary eligible for every year after 5 year of regular service under one employer
From India , Hoshiarpur
You can use folloing formula for G. Caculation Last month basic x 15 x No.of Years of Service Completed 26
From India , Mumbai
Can anyone help me, in understanding this funda:
"(After completion 5 years, upto 6 months should be counted as previous year and after 6 months to be counted as next year. For eg. 6 years 5 months to be counted as 6 years and 6 years 8 months to be counted as 8 years.)"
From India , Mumbai
Mr. Anjum,
Its very simple. Its just like rounding of Paise to nearest Rupees. e.g. Rs. 5.60 would be rounded off to Rs. 6/- where as Rs. 5.40 would be rounded off to Rs. 5/-. Similarly if months are more than 6 then it would rounded off to higher side i.e. in Years 1 would be added e.g. 5 years 5 months would be rounded off to 5 years where as 5 years 8 months would be rounded off to 6 years.
Contact if need further clarifications.
Regards,
PRABHJOT S. KASHYAP
Sr. Executive - Relationship Development


<link outdated-removed> |Virka Infotech Services
Ludhiana (INDIA)|New Jersey (US)|Ontario (CANADA)|Victoria (AUSTRALIA)


From India , Delhi
Payment of Gratuity Act, 1972

Object: It is an act to provide for a scheme for the payment of gratuity to employees engaged in factories, mines, oilfields, ports, railway companies, and shops or other establishments.

Applicability of the Act: Any employer of the above noted establishments where 10 or more persons are employed or were employed on any day of the preceding 12 months is liable to pay gratuity to its employees. Once the Act becomes applicable, it continues even if the number of employees falls below ten.

Entitlement: Gratuity is payable to an employee (nominee - in case of death of employee) who has rendered continuous services of five years or more on his termination of employment, superannuation, retirement or resignation. Completion of continuous service of five years is not necessary where the termination of employment is due to death of disablement.

Calculation of Gratuity Amount:
W X Y X 15 / 26 where
W = Last wage drawn i.e. basic + DA.
Y = Number of completed years of continuous service.
15 = 15 days salary.
26 = Number of working days in a month.

Maximum Limit: Rs. 3.5 lacs (w.e.f 24.09.1997)

Benefits:
1. The quantum of gratuity is to be computed at the rate of 15 days wages (07 days wages in case of seasonal establishments) based on rate of wages last drawn by the employee concerned for every completed years of service or a part thereof exceeding 06 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.

Time Limit for Application to Employer:
Employee has to make an application in Form - I to his employer within 30 days from the date the gratuity becomes payable.

Whom to apply in case of non-payment by employer or dispute:
Application in Form - N is to be made to the "Controlling Authority" i.e. the Assistant Labour Commissioner or the Labour-cum-Conciliation Officer of the concerned area within 90 days on the expiry of 30 days period of the employer.

Appeal: An aggrieved party can file an appeal to the Appellate Authority i.e. Additional Labour Commissioner within 60 days of the decision of the Controlling Authority.

Penal Provision:
Nonpayment of gratuity payable under the Act is punishable with imprisonment up to 02 years (minimum 06 months) and / or fine upto Rs. 20,000/-. Other contravention/offenses attract impprisonment up to 01 year and/or fine up to Rs.10,000.
From India , Bangalore
it is (Basic Pay+DA) X 15/26 X No. of years of Services(runding off). Regards Rahul Bhardwaj
From India , Delhi
Hi,
In my office urgently requirement is going on. around 25 candidates.. Please help out this..
I need Degree OR Diploma candidates If know please send as below address,
Data collection Infotech (India) Pvt Ltd,
105, 1st floor,VITC Export Bhavan,
Near 14th Cross, 488/B, 4th phase,
2nd stage,
Peenya ,
Bangalore-58
Regards
Nagabhushan
98447223300
From India , Bangalore
hello to all my fellow members ...
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Naveen Kumar
From India , Hyderabad
If employee leaves after completing 4.5 yrs , then is he liable to get his gratuity money? In the both the cases.........when company has his own trust and if dont have.
From India , Faridabad
Hi,
Any one rendered continuous service of 5 years he is eligible to get the
Gratuity as per Gratuity Act 1972.
Gratuity Calculation
Date of Leaving Service - Date of Joining (Made as Badli) = No.of years
eligible gratuity. example:
DOL : 31.08.2008
DOJ : 10.02.2000
No.of Years service rendered : 21days 6months 8 years ie. 9 years
His last drawn salary : Basic Rs.5000.00, DA Rs.2500.00, HRA Rs.1250.00,
Con.All Rs.750.00 Total Rs.9500.00
Eligible Gratuity Amount :
Basic + DA X 15 days salary per year X No.of years completed
-----------------------------------------------------------
26
=5000+2500X15X9
---------------- = Rs.38942.30
26
Regards,
Velmailv
From India , Coimbatore
Maximum gratuity payble is 3.5 lacs
Gratuityis tobe paid with in one month of the seperation.
M.A.Mulla
Maximum gratuity payble is 3.5 lacs
Gratuity is tobe paid with in one month of the seperation.
M.A.Mulla
From India , Mumbai
Hi, Which month salary needs to be considered for Calculation of gratuity:confused: 15 days of salary of ............month/26**No of years of Service Regards, Soumya
From India , Bangalore
Dear Soumya,
Last paid Salary would be considered for calculating Gratuity.
Regards,
PRABHJOT S. KASHYAP
Sr. Executive - Relationship Development


<link outdated-removed> |Virka Infotech Services
Ludhiana (INDIA)|New Jersey (US)|Ontario (CANADA)|Victoria (AUSTRALIA)


From India , Delhi
hi sug
NAME AND ADDRESS OF THE COMPANY
NAME OF EMPLOYEE
TOKEN NUMBER
DESIGNATION
DEPARTMENT
TOTAL NO WORKING DAYS
LEAVE DAYS
PAID HOLIDAYS
PF EMPLOYEE
ESI EMPLOYEE
PF EMPLOYER
ESI EMPLOYER
BASIC
DA
HRA
TOTAL SALARY
DEDUCTION
TAKE HOME SALARY
WAGES FOR THE MONTH OF
DATE OF SALARY
The said formet can be modified as per your requirment
cm
From India , Coimbatore
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9710940401
From India , Tiruppur
After completion 5 years, upto 6 months should be counted as previous year and after 6 months to be counted as next year. For eg. 6 years 5 months to be counted as 6 years and 6 years 8 months to be counted as 8 years. Sir It my be 7 Year.
Other your counting is perfet sir.
-Thank's sir
Gratuity shall be payable to an employee on the termination of his employment after he has rendered continuous service for not less than five years,-
As per Payment of Gratuity Act 1972, under Sec. 4(2). Says, In the case of a monthely rated employee, the fifteen day's wages shall be calculated by dividing the monthly rate of wages last drawn by him by twenty-six and multiplying the quotient by fiften.
-Jigar Patel
From India , Ahmadabad
While evaluating gratuity, you need to also make sure whether the employee has received any gratuity from his previous employers. If so then his entitlement has to take that also into consideration as his entire gratuity benefit (all employment taken together) should not exceed 3.5 lacs.
From India , Hyderabad
If a basic of an employee is revised in between the fical year, then how to calculate the gratuity? eg 1st year basic is Rs. 4000, after 7th month basic is revised to Rs. 5000.
From India , Madras
Yes i have some idea about the calculation of gratuity , it calculates on minimum wages of 15 days or 7 days per month. — — — — brianna
From India , Lucknow
1. 5 Years Of Continuous Service Would Also Include 4years & 6 Months Plus Service Which When Rounded-up Is 5 Years.
2. Break In Service Periods May Be Excluded From Gratuity Calculation I.e. If Somebody Remains On Unauthorised Absence For A Long Period But Not Dismissed, Such Period May Be Deducted From Total Period Of Service For Gratuity Calculation.
Any Comments?
From India , Calcutta
Objective : We have a policy of GRatuity calculation as follows:
1. Any employee who works less 3 years 3 weeks is paid as gratutiy annual.
2. >3 years and < 5 years paid 4 Weeks
3. > 5 years and < 10 years paid 1 month
4. > 10 years paid 1 1/2month
How to calculate ?
1. person working for 5 years 6 months
2. Person Working for 18 years
3. Person working for 9 years and 9months
can anyone explain
Thanks
Venugopal
From United Arab Emirates , Dubai
Hi Venu,

Few Fundamentals whilst Paying Gratuity:

1. Employee has to Complete 5 Years of Continous Service
2. Employee should have worked for min. 240 Days in Every Year(Excluding Holidays, but inclusive of Leave)
3. @ the time of leaving the no.of Years should be rounded of to the nearset number, Ex: 5 years 6 defines that She/He has completed 5.5 Years hence, to be Rounded of to 6 Years. Likewise 5 Years 5 Months defines 5.45 Years hence, to be rounded of to 5 Years.
4. Basic is defined to be as Last Drawn Basic which includes Spl. Allowance+Dearness Allowance (if any).

So, the working is as follows:

Gratuity=Last Drawn Basic*15/26*No.of Years of Service.

As far as your company policy is considered you might have structured your CTC which includes annual provision of Gratuity. Hence you may use the same formula, but, paying any Employee His/Her's Gratuity for less than 5 completed years of continous service would only be for Employees Who have expired during the Employment due to any reason. Else, it is a non-statutory facility if you are paying for less than 5 Years.

Regards,

Chaitanya
From India , Thana
can anybody tell me about the Superannuation. whats the procedure of funding it back from organization and whats its use to employee. Ritu Bhardwaj
From India , Faridabad
one of friend is deprived of gratuity after 11 years of services. The management is saying there is no gratuity in our company and daring him to go to court. Can anybody suggest a solution for this situation.
From India , Delhi

From Singapore , Singapore
I slightly differ from Mr Rahul that company need to have it's own trust for payment of gratuty if it want to pay even after 3 Yrs. It is binding libility on employer to pay the gratuty after 5 yrs but no restriction on employer if he wants to pay even afet 3 yrs. In any case gratuty is not deducted from employee salary and deposited in any fund like PF. Trust restriction is only in case of PF & ESI if it is more benificial than gov. fund.
Pl. support your knowledge in matter.
Ramanuj Rai

From India , Bangalore
Can u anybody solve my question? What means of "superannuation" & why should the company use this? How can we calculate it?:lol:
Could u please sort out my doubt of superannuation? What means of "superannuation"? how can we calculate it?:wacko:
With Best Regards,
Mohan .K
9986302866
From India , Bangalore
it is my simple question to all where is the gratuity fund in the real sense
if a person gets retair where he will ask for the gratuity.
who will pay the employee the gratuity
where is the gratuity in the balance sheet
Wht is the role of insurance company in this gratuity
From India , New Delhi
HI, Can anybody help me to find some books on HR Generalist, Labour laws, and payroll details. Regards Shashikala
From India ,
calculation - Basic+ DA*15/26*number of yrs in service If an employee is working for more than 5 yrs then only he is eligibile vijay
From India , Visakhapatnam
Hi, Examples Basic 4200 / 26 = 162.00 Completed year x days = total days 5 x 15 = 75 days 162 x 75 = 12150.00 Gratuity payable = 12150.00 hope u can understand Ghanshyam Pandey
From India , Delhi
Hi Nagabhusan, The contact no. which you have given here is wrong. Kindly provide me correct no as i am looking for a good oppurtunity in HR. Regards Minal
From India , Mumbai
* Any one completes continuous service of 5 years is eligible to get
Gratuity.
Gratuity Calculation:
Date of Joining of X is : 01.12.2002
Date of Resigned of X is : 31.02.2008
Total wages of X is : Rs.5000.00
(Basic Rs.2500.00,DA is Rs.1250.00,HRA is Rs.750.00,CA is Rs.500.00)
No.of years Eligible for Gratuity :
DOR : 31.02.2008
DOJ : 01.12.2002
-----------
30.02.5 : ie. 5 Years
Eligible Gratuity Amount : Basic+DA x 15days wages per year x No.of years
26 completed
2500+1250 x15 x 5
----------
26
If any completes 5 years 6 months means you take as 6 years.
I think this is sufficient for you.
Regards,
Velmail.V :-)
If 6 years and 4 months : You take as 6 years.
Velmailv
From India , Coimbatore
Dear Ramanuj ji
This is Bharti working in Kindergarten school. i was appointed on 4/07/1988 i resigned from my job on 18/06/2008 with my 3 months notice which completed on 17/09/08. i waited for my gratuity till dated but my management refused to pay saying if i resigned from my job i resigned from my incentives. i resigned along with 3 collegues of mine all of us working for kindergaten pvt section. amongst us only 1 got gratuity on humanitarian grounds.. our school collect funds Rs. 1000/- from new admissions in kindergarten towards teachers gratuity fund. for which the recipt is issued to each child seeking admission. (i dont have recipt since im not in school any more) but school will have the duplicate for sure. 2 others are not getting gratuity saying they'e not completed 10 yrs of service. (completed 8Yrs). for me theres no excuse not to give but.. now only reason they give is that they dont want to give gratuity as theres is a pvt institute... can you explain how do i get my gratuity... more over if u could pl. reply on i'll be obliged as after posting here i cant find my own post since im new to this forum.. i'll be obliged .. pl. help me...
From India , Mumbai
Contact the area labour officer with a written complaint, same copy to LIC of India alongwith proof of employment like appointment letter, salary slips, if available copy of attendance registers also. Also if possible send a lawyers notice regarding your complaint. The organisation will act for sure.....
From India , Mumbai
can you tell me how to locate labour officer I’m in Khar Area of Mumbai.. i’ll be obliged
From India , Mumbai

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