Friends, Could you share how gratuity contribution is calculated by the employer? Regards, Shijit.
From India, Kochi
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125From India, Kochi
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Dear Shijit,
There is no contribution for Gratuity from the employee, and the employer has to pay for his service in the company. Please find below the calculation of Gratuity:
Basic + DA x 15 days salary
--------------------------------- x No. of years of service
26
Regards,
Santhosh
From India
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There is no contribution for Gratuity from the employee, and the employer has to pay for his service in the company. Please find below the calculation of Gratuity:
Basic + DA x 15 days salary
--------------------------------- x No. of years of service
26
Regards,
Santhosh
From India
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Dear Shrijit,
Santhosh has provided the formula for the withdrawal of Gratuity when the employee leaves the organization after 5 or more years of service. If you are inquiring about how gratuity is calculated to be taken into consideration while calculating an employee's CTC amount, then:
Gratuity = 4.81% of Basic
Regards,
Chanchal
From India, Mumbai
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Santhosh has provided the formula for the withdrawal of Gratuity when the employee leaves the organization after 5 or more years of service. If you are inquiring about how gratuity is calculated to be taken into consideration while calculating an employee's CTC amount, then:
Gratuity = 4.81% of Basic
Regards,
Chanchal
From India, Mumbai
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Dear All,
In case the employee has worked only for 5 years and 3 months, how many years do you take into consideration for calculating Gratuity and what is the procedure for calculation under these circumstances?
Thanks,
AshaVinay
From United States, Saint Louis
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In case the employee has worked only for 5 years and 3 months, how many years do you take into consideration for calculating Gratuity and what is the procedure for calculation under these circumstances?
Thanks,
AshaVinay
From United States, Saint Louis
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Hi,
Some companies calculate the service period of separating employees in the following ways:
1) After the full completion of 5 years.
2) After completing 4 years and 8 months but less than 5 years, it is considered as a flat 5 years.
3) Completion of 5 years and 3 months is taken as only 5 years. Any period less than 6 months is rounded to the nearest whole number beyond five years.
The Gratuity Act has accepted 240 days of service in the 5th year as eligibility for full gratuity.
- Coverage for all employees irrespective of designation, status, or salary.
- Temporary employees are also included; there is no distinction made between temporary and permanent workmen.
Regards,
Chandru
From India, Madras
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Some companies calculate the service period of separating employees in the following ways:
1) After the full completion of 5 years.
2) After completing 4 years and 8 months but less than 5 years, it is considered as a flat 5 years.
3) Completion of 5 years and 3 months is taken as only 5 years. Any period less than 6 months is rounded to the nearest whole number beyond five years.
The Gratuity Act has accepted 240 days of service in the 5th year as eligibility for full gratuity.
- Coverage for all employees irrespective of designation, status, or salary.
- Temporary employees are also included; there is no distinction made between temporary and permanent workmen.
Regards,
Chandru
From India, Madras
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