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Hi Pawar,
Here you go.
The calculation for the last drawn basic salary is as follows:
Last drawn basic salary x 15 / 26 x Number of years of service.
Here, '15' refers to the half-month salary, and '26' refers to the number of working days in the month, assuming 8 working hours per day.
Regards,
Bharath Bhushan
From India, Bangalore
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Here you go.
The calculation for the last drawn basic salary is as follows:
Last drawn basic salary x 15 / 26 x Number of years of service.
Here, '15' refers to the half-month salary, and '26' refers to the number of working days in the month, assuming 8 working hours per day.
Regards,
Bharath Bhushan
From India, Bangalore
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Dear Member,
Please provide the formula under which Act/Rules/service rules (Central or State).
With Regards,
R.N.Khola
QUOTE=pawarmohan;1104076]Wanted Formula of Gratuity Calculation[/QUOTE]
From India, Delhi
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Please provide the formula under which Act/Rules/service rules (Central or State).
With Regards,
R.N.Khola
QUOTE=pawarmohan;1104076]Wanted Formula of Gratuity Calculation[/QUOTE]
From India, Delhi
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Understanding Gratuity and Its Calculation
Gratuity is an award for an employee's long and meritorious service with the firm and is governed by the Payment of Gratuity Act 1972. An employee is eligible for gratuity only if he/she has been in service with the company for at least five continuous years. Gratuity can be calculated as "Basic salary x 15/26 x years spent in service."
In the case of death or disablement while on duty, continuous service for 5 years is not necessary.
For any further queries, you can email me at [Email Removed For Privacy Reasons].
Regards,
Neha
From India, Pune
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Gratuity is an award for an employee's long and meritorious service with the firm and is governed by the Payment of Gratuity Act 1972. An employee is eligible for gratuity only if he/she has been in service with the company for at least five continuous years. Gratuity can be calculated as "Basic salary x 15/26 x years spent in service."
In the case of death or disablement while on duty, continuous service for 5 years is not necessary.
For any further queries, you can email me at [Email Removed For Privacy Reasons].
Regards,
Neha
From India, Pune
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Gratuity Calculation Details
Gratuity is paid for 15 days for every completed year of service. First, one should have completed 5 years of continuous service. To arrive at 15 days of salary, use the formula: (Basic + DA) / 26 = one day's salary. Multiply this by 15 to calculate 15 days of salary. This calculation should be done regardless of the number of days in a month, as ruled by the Hon'ble Supreme Court of India.
This amount is then multiplied by the number of years of service put in by the employee. If 6 months or more have been completed, it is considered as 1 year; less than 6 months is neglected. However, the primary condition is that one should have completed 5 years of service.
Regards,
NAGARAJ
From India, Bangalore
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Gratuity is paid for 15 days for every completed year of service. First, one should have completed 5 years of continuous service. To arrive at 15 days of salary, use the formula: (Basic + DA) / 26 = one day's salary. Multiply this by 15 to calculate 15 days of salary. This calculation should be done regardless of the number of days in a month, as ruled by the Hon'ble Supreme Court of India.
This amount is then multiplied by the number of years of service put in by the employee. If 6 months or more have been completed, it is considered as 1 year; less than 6 months is neglected. However, the primary condition is that one should have completed 5 years of service.
Regards,
NAGARAJ
From India, Bangalore
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Respected Nagraj, Is there any compliace that worker must have to work 240 days every year to be eligible for gratuity? Thanks & Regards, Ravinder Vardhman
From India, Rohtak
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From India, Rohtak
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hi pawar, last drawn salary(basic+da) * year of service * 15 / 26 B’regards from sumit kumar saxena 9899669071, 0120-4131277
From India, Ghaziabad
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From India, Ghaziabad
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Formula for Gratuity Calculation
Gratuity calculation formula: basic wages/salary/26 x 15 x number of completed years of service.
Example:
Let's say basic wages/salary = Rs 5000/-
Number of completed years of service = 5 years
Calculation: 5000/26 x 15 x 5 = Rs 14423/- gratuity.
Gratuity becomes applicable after continuous 5 years of service. In the case of death while in service, it is not necessary to complete 5 years of continuous service. Gratuity is payable under the Gratuity Act, and it is compulsory. There is no issue of loss and profit to the organization. If it is not payable as per the act within the time, then 12% interest is applicable.
Regards,
S.N. Yelgawakar
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Gratuity calculation formula: basic wages/salary/26 x 15 x number of completed years of service.
Example:
Let's say basic wages/salary = Rs 5000/-
Number of completed years of service = 5 years
Calculation: 5000/26 x 15 x 5 = Rs 14423/- gratuity.
Gratuity becomes applicable after continuous 5 years of service. In the case of death while in service, it is not necessary to complete 5 years of continuous service. Gratuity is payable under the Gratuity Act, and it is compulsory. There is no issue of loss and profit to the organization. If it is not payable as per the act within the time, then 12% interest is applicable.
Regards,
S.N. Yelgawakar
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I know the formula; we are using it, but in my organization, there is a CTC concept. However, in my organization, they will pay us after 5 years of service; they are deducting it after a 6-month probation period. We are using this formula - basic salary/26*15 and dividing it by the months in which we have to collect it from the employee.
Can you please tell me if this is the right way? I don't think it's right.
Regards,
Neha
From India, Delhi
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Can you please tell me if this is the right way? I don't think it's right.
Regards,
Neha
From India, Delhi
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Gratuity calculation.doc
Gratuity Calculation tool.xls