Hi Sir, I have one doubt in following formula for calculating Gratuity. ((Basic + DA)*15/26)* Basic means Current basic or Avg basic of experience
From India, Madras
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1From India, Madras
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Dear member,
We are to consider the rate of last drawn basic wages while calculating gratuity.[sec.4(2)]
Regards,
R.N.Khola
From India, Delhi
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We are to consider the rate of last drawn basic wages while calculating gratuity.[sec.4(2)]
Regards,
R.N.Khola
From India, Delhi
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(Fact Check Failed/Partial)-The user reply is partially correct. While mentioning the consideration of the rate of the last drawn basic wages for gratuity calculation is accurate, the query about whether to use the current basic or average basic of experience remains unclear. It's essential to clarify that the last drawn basic wage should be considered for the calculation.
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It is very simple..
Basic+DA*15(days)/26*No of years (not less than 5 years)
Note*
1)7 days in case of seasonal establishment.
2) In case of death and permanent disablement the employer has to pay the gratuity even before 5 years
3) Under Gratuity Act 1972, now the maximum gratuity amount payable is Rs. 10,00,000
From India, Mumbai
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Basic+DA*15(days)/26*No of years (not less than 5 years)
Note*
1)7 days in case of seasonal establishment.
2) In case of death and permanent disablement the employer has to pay the gratuity even before 5 years
3) Under Gratuity Act 1972, now the maximum gratuity amount payable is Rs. 10,00,000
From India, Mumbai
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(Fact Check Failed/Partial)-The user's reply is mostly correct, but there is a small error in the calculation formula for gratuity. The correct formula for calculating gratuity for an employee who completes less than one year with the organization is: Basic+DA*15(days)/26*No of completed years of service.
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Dear Member,
This Act i.e. Payment of Gratuity Act, 1972 do not have any provision relating any contribution from any corner. The employer is liable to pay gratuity amount as & when payable.
Regards,
R.N.Khola
From India, Delhi
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This Act i.e. Payment of Gratuity Act, 1972 do not have any provision relating any contribution from any corner. The employer is liable to pay gratuity amount as & when payable.
Regards,
R.N.Khola
From India, Delhi
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(Fact Check Failed/Partial)-The Payment of Gratuity Act, 1972 mandates gratuity payment based on years of service. An employee completing less than one year is not entitled to gratuity.
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if any person completed his service 27 year,5 month,24day & his basic+ DA 6000 how to calculate gratuity & calculate only 27 year or calculate also 27 year,5month,24 day
From India, Pune
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From India, Pune
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(Fact Checked)-The calculation of gratuity includes fractional years of service. For 27 years, 5 months, and 24 days of service, the gratuity will be based on the total duration of service, including the fractional part. Ensure you include all the years, months, and days in the calculation. (1 Acknowledge point)
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Hi Tandeep,
Kindly help me in clarifying my doubts on the above-stated formula.
According to the formula stated above, the gratuity of an employee earning 15k per month, say after 5 years, would be Rs. 1,125,000 (15,000 * 15 * 5 = 1,125,000). However, he would be paid just 3.5 lacs as gratuity since the maximum gratuity payable under the Act is Rs. 3,50,000/- (w.e.f. 24-9-1997).
Kindly clarify.
Regards, Tandeep
Hi Tandeep,
You can find the formula that states (Basic + D.A.) * 15 * 5 / 26, which clearly states that 15,000 * 15 * 5 / 26 = 43,270. Further clarification is needed, 1,125,000 / 26 needs to be done, and the sum amount will be the gratuity.
Regards, Anthony Pinto.
From India, Mumbai
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Kindly help me in clarifying my doubts on the above-stated formula.
According to the formula stated above, the gratuity of an employee earning 15k per month, say after 5 years, would be Rs. 1,125,000 (15,000 * 15 * 5 = 1,125,000). However, he would be paid just 3.5 lacs as gratuity since the maximum gratuity payable under the Act is Rs. 3,50,000/- (w.e.f. 24-9-1997).
Kindly clarify.
Regards, Tandeep
Hi Tandeep,
You can find the formula that states (Basic + D.A.) * 15 * 5 / 26, which clearly states that 15,000 * 15 * 5 / 26 = 43,270. Further clarification is needed, 1,125,000 / 26 needs to be done, and the sum amount will be the gratuity.
Regards, Anthony Pinto.
From India, Mumbai
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(Fact Checked)-The calculation formula for gratuity is (Basic + D.A.) * 15 * years of service / 26. The maximum gratuity under the Act is Rs. 3,50,000. (1 Acknowledge point)
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Hi Tandeep,
Your calculation for the above question should be as follows:
(15000 * 15 / 26) * 5 years of service
(225000 / 26) * 5 years of service
(8654) * 5 years of service
= Rupees 43270.
Therefore, the actual Gratuity payment to the employee will be Rs 43270.
If the gratuity amount exceeds Rs 350000, then the employee will be entitled to a maximum of Rs 350000 only.
I hope I have made it clear.
Mahesh
Executive (HR & Admin)
From India, Bangalore
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Your calculation for the above question should be as follows:
(15000 * 15 / 26) * 5 years of service
(225000 / 26) * 5 years of service
(8654) * 5 years of service
= Rupees 43270.
Therefore, the actual Gratuity payment to the employee will be Rs 43270.
If the gratuity amount exceeds Rs 350000, then the employee will be entitled to a maximum of Rs 350000 only.
I hope I have made it clear.
Mahesh
Executive (HR & Admin)
From India, Bangalore
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(Fact Check Failed/Partial)-The calculation for gratuity provided is incorrect. For employees with less than one year of service, gratuity is not applicable as per the Payment of Gratuity Act, 1972. Kindly review the eligibility criteria for gratuity calculations.
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FURMULA FOR CALCULATING GRATUITY.doc
SACHIN GRATUITY FORMULA SHEET.xlsx
CiteHR.AI
(Fact Check Failed/Partial)-The formula provided is partially correct. The correct formula for calculating gratuity for an employee who has completed less than one year is ((Basic + DA) * 15/26) * (Number of years worked). Ensure to use the actual number of days worked in the calculation.