QUERY
Hi! All,
Can you help me in calculating the Gratuity amount payable .. under the following conditions mentioned AS BELOW
If Basic Salary:12000...
If total years with the company:11yrs & 9 months
If gratuity is pending for ...........1 year
If Gratuity is maintained through LIC
what willl be the Sum of gratuity that will be payable .:?:
Will there be any iNTREST component payable to the employeee :?
If yes who will bE payin the same...Co or LIC :unsure:

29th September 2008 From India , Pune

PARTICIPATING IN DISCUSSION:
Ganeshhr
Hr Executive
Rajendrasappa
Client Relations Manager
Vishaltripathi
Pers. & Admn.
+10 Others

Hi, Priyalakhsmi has given the righ formula. You can round off the number of years to 12 years and calculate. Regards
5th October 2008 From India , Gurgaon
such as senorita i also want detailed information on this formula. wht does 15 and 26 stands for:confused:
6th October 2008 From India , Pune
Dear All,
Let me explain what is 15 and 26. 15 implies that 15 days salary for every completed year of service. 26 implies that no of days in a month to calculated the daily average salary.
Regards
Ganesh
6th October 2008 From India , Madras
Dear All,

If gratuity is maintained by LIC, gratuity amount payable for the employee whose salary is Rs.12000/- with 11.9 months service is as follows:
12000/- x 12 x 15
----------------- = Rs.83077/-
26
No. interest will be payble to the employee from LIC for delayed process.

Thanks & Regards,
Mubarack
Manager (HR)
KAR Group
Chennai

Hi,
Please find below some formats of termination letter:

RETRENCHMENT LETTER ON SUPERANNUATION

From our records, we find you have attained age of superannuation, i.e 60 years in………………………….Itself. While we do recognize your valuable service, it is our company’s policy to retire people at the age of 60 years.. Of course we relaxed this rule by two years for you as a special case.

Now in continuation for our company’s policy we wish to offer you retirement with effect from ………………………. You will be relieved from our service after the close of office hours on………………..

Wishing you a very peaceful and healthy life after retirement.

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

RETRENCHMENT LETTER ON NON-PERFORMANCE


We regret to inform that despite of our repeated warning in recent times, you are not able to measure up to our expectations in your performance.

Production being the most vital functional area, there is no room for complacency and hence we have decided to terminate your service with immediate effect.

You are requested to approach Personal department for settlement as per company’s rule.


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



RETRENCHMENT LETTER ON FREQUENT ABSENT - OFFICE

Of late, it has come to management’s notice that you are frequently absenting yourself from the work.

Hence we have decided to terminate your service with effect from …………………..

You are requested to approach Personnel department for settlement as per company’s rules


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


Thanks & Regards,
Mubarack
Manager (HR)
KAR Group,
Chennai.




6th October 2008 From India , Madras
Regarding Calculation of Gratuity
15 days x 12000 x 12 yrs =83076.92
26
The Gratuity Calculation is Rs. 83076.92
Condition:
11 yrs and 9 month will be considered as 12 yrs.
The Application for Gratuity to be filled in Form 1, hence no penalty will attract the delay payment, legally,
Thanks
V K Sharma
6th October 2008 From India , Vasai
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.
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
You can use folloing formula for G. Caculation

Last month basic x 15 x No.of Years of Service Completed
26
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.

it is (Basic Pay+DA) X 15/26 X No. of years of Services(runding off).


8th October 2008 From India , Madras
Hi, Can any one breif me on gratuity payment workings for the employees worked more than 10 years with the organisation. Regards, Preeti
10th October 2008 From India , Mumbai
LIC must have given you a master policy and a format for submitting gratuity claims. Generally companies do prefer to put all the claims on monthly basis.
You have to submit the details as required in format given by lic and they will process the claim and give the cheque in favour of your company in turn you will have to pay the same to the concerned ex-employee.
No. interest is paid.
Calculation 12000/26X15 = 6923 x 12 yrs. = 83076
11th October 2008 From India , Pune
In those 12 years of service, what happens my BASIC was changing every year? Do you apply that formula for each year.
14th October 2008 From India , Selam

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