Dear all, Can anyone tell me about Gratuity in briefly?I want to know how to calculate and eligibility of Gratuity?
From India, Bangalore
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1From India, Bangalore
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Hi Sujayda Find enclosed Gratuity act for the reference
From India, Bangalore
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From India, Bangalore
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Gratuity will be granted for good, efficient, and faithful service to whole-time employees of the company, including the Chief Executive and full-time Functional Directors, but shall exclude the following:
- Casual and non-regular workmen,
- Government servants and others employed on deputation terms,
- Persons engaged on a contract basis,
- Apprentices and trainees, and
- Reemployed persons (Reemployed person means a person employed in the company on attaining the age of superannuation).
Payment of Gratuity
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:
- On his superannuation, or
- On his retirement or resignation, or
- On his death or disablement due to accident or disease.
Provided that the completion of continuous service of five years shall not be necessary where the termination of the employment of any employee is due to death or disablement. Provided further that in the case of the death of the employee, gratuity payable to him shall be paid to his nominee or, if no nomination has been made, to his heirs. Where any such nominee or heir is a minor, the share of such minor shall be deposited with the controlling authority who shall invest the same for the benefit of such minor in such a bank or other financial institution, as may be prescribed, until such minor attains majority.
Calculation of Gratuity
Fifteen days' wages for every completed year of service have to be calculated on the basis of wages paid to an employee for the month divided by twenty-six days and the quotient multiplied by fifteen days.
Calculation of Gratuity shall be made as under:
((Pay + DA + Personal Pay if exists) x 15 x No. of completed years of service) / 26 = Gratuity (From 01.01.2007, it was increased from 3.5 Lacs to 10 Lacs max. to be paid).
From India, Pune
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- Casual and non-regular workmen,
- Government servants and others employed on deputation terms,
- Persons engaged on a contract basis,
- Apprentices and trainees, and
- Reemployed persons (Reemployed person means a person employed in the company on attaining the age of superannuation).
Payment of Gratuity
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:
- On his superannuation, or
- On his retirement or resignation, or
- On his death or disablement due to accident or disease.
Provided that the completion of continuous service of five years shall not be necessary where the termination of the employment of any employee is due to death or disablement. Provided further that in the case of the death of the employee, gratuity payable to him shall be paid to his nominee or, if no nomination has been made, to his heirs. Where any such nominee or heir is a minor, the share of such minor shall be deposited with the controlling authority who shall invest the same for the benefit of such minor in such a bank or other financial institution, as may be prescribed, until such minor attains majority.
Calculation of Gratuity
Fifteen days' wages for every completed year of service have to be calculated on the basis of wages paid to an employee for the month divided by twenty-six days and the quotient multiplied by fifteen days.
Calculation of Gratuity shall be made as under:
((Pay + DA + Personal Pay if exists) x 15 x No. of completed years of service) / 26 = Gratuity (From 01.01.2007, it was increased from 3.5 Lacs to 10 Lacs max. to be paid).
From India, Pune
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Understanding Gratuity
Gratuity is a retirement benefit paid to employees, usually at the time of retirement. One becomes eligible for gratuity after completing 5 years of service.
Gratuity Calculation Formula
The formula for the calculation of Gratuity in India is as follows: Gratuity Calculation = [(Basic Pay + D.A) x 15 days x No. of years of service] / 26. Here, 15 is considered as the half-month salary, and 26 is considered to be the number of working days in a month, excluding 4 Sundays which you will have in most months.
With Regards
From India, Ranchi
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Gratuity is a retirement benefit paid to employees, usually at the time of retirement. One becomes eligible for gratuity after completing 5 years of service.
Gratuity Calculation Formula
The formula for the calculation of Gratuity in India is as follows: Gratuity Calculation = [(Basic Pay + D.A) x 15 days x No. of years of service] / 26. Here, 15 is considered as the half-month salary, and 26 is considered to be the number of working days in a month, excluding 4 Sundays which you will have in most months.
With Regards
From India, Ranchi
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Gratuity Act-Teachers-Ma dhya Pradesh.docx
Payment of Gratuity Act, 1972 & The Rules.ppt