I am working with a private company in JAFZA since May 2005. Now, I have received a termination letter (with a notice period of 30 days). By the end of my tenure, I will have completed 6 years and 4 months. My question is, how will my gratuity be calculated if my basic salary is 5000? How much gratuity amount can I expect to receive? Please assist me with this matter.
From United Arab Emirates, Dubai
Acknowledge(0)
Amend(0)
From United Arab Emirates, Dubai
Acknowledge(0)Amend(0)
The formula for calculating the Gratuity amount is as follows: Last drawn salary x No. of years served x 15 divided by 26.
Accordingly, the solution to your query is: 5000 x 6 years x 15 / 26 = 17308.
Your Gratuity amount is 17308.
From India, Madras
Acknowledge(0)Amend(0)
66Accordingly, the solution to your query is: 5000 x 6 years x 15 / 26 = 17308.
Your Gratuity amount is 17308.
From India, Madras
Acknowledge(0)Amend(0)
for your company the payment of Gratuity act is not applicable: then the calculation is : (Preceding 10 month salary/10)*15/30* total service years.
From India, Mumbai
Acknowledge(0)Amend(0)
From India, Mumbai
Acknowledge(0)Amend(0)
hi Ramachandram in your calculation you calculated for 6 years onely then what about 4 months. we should consider 4 months are we shoud take 6 years onely
From India, Hyderabad
Acknowledge(0)Amend(0)
From India, Hyderabad
Acknowledge(0)Amend(0)
The formula for calculating gratuity is: Basic + D.A * 15/26 * number of years in service.
First, tell me what your last basic salary was at the time you left the company. Please provide me with the exact details so that I can assist you.
Regards,
Neha
From India, Delhi
Acknowledge(0)Amend(0)
First, tell me what your last basic salary was at the time you left the company. Please provide me with the exact details so that I can assist you.
Regards,
Neha
From India, Delhi
Acknowledge(0)Amend(0)
yes please give me full details of your salary. than i will help. plz give me the following information Basic DA VDA FDA at the time of left service
From India, Visakhapatnam
Acknowledge(0)Amend(0)
From India, Visakhapatnam
Acknowledge(0)Amend(0)
Formula for gratuity calculation is (basic*4.8%)*12= a then a*6= your gratuity amount calculation of 4.8% is:-15/312*100=4.8% ex:5000*4.8%=240 240*12=2880 2880*6=17280 will be your gratuity amount
From India, Faridabad
Acknowledge(0)Amend(0)
From India, Faridabad
Acknowledge(0)Amend(0)
For purposes of calculating payable gratuity, a period of 6 months or more is taken into consideration and treated as if the employee has worked for one full year. This applies only after he/she completes the qualifying criteria of working for a continuous period of 5 years in the organization.
In the present case, our friend has worked for a period of 6 years and 4 months. Therefore, he will be entitled to gratuity for 6 years only.
The amount calculated assuming the salary is Rs. 5000/- would be:
5000/26 x 15 x 6 = Rs. 17,308
I hope I have answered your query to your satisfaction.
Best wishes,
Vasant Nair
"Hi Ramachandram, in your calculation you calculated for 6 years only. What about the 4 months? Should we consider the 4 months, or should we take 6 years only?"
From India, Mumbai
Acknowledge(0)Amend(0)
In the present case, our friend has worked for a period of 6 years and 4 months. Therefore, he will be entitled to gratuity for 6 years only.
The amount calculated assuming the salary is Rs. 5000/- would be:
5000/26 x 15 x 6 = Rs. 17,308
I hope I have answered your query to your satisfaction.
Best wishes,
Vasant Nair
"Hi Ramachandram, in your calculation you calculated for 6 years only. What about the 4 months? Should we consider the 4 months, or should we take 6 years only?"
From India, Mumbai
Acknowledge(0)Amend(0)
Subject - Re: gratuity calculation I agree with the same clarification given by Mr P Ramachandran Regards Vinod Chauhan
From India, Delhi
Acknowledge(0)Amend(0)
From India, Delhi
Acknowledge(0)Amend(0)
Yes my first answer was wrong.little bit i was confused. The correct answer is 1-step-15*6=90 2-step-5000/26=192.31 3-step-192.31*90=17308.
From India, Faridabad
Acknowledge(0)Amend(0)
From India, Faridabad
Acknowledge(0)Amend(0)
Dear Sir, I have small clarification that if a person has worked 6.6 years, what is his total experience. Ranjith
From India, Bangalore
Acknowledge(0)Amend(0)
From India, Bangalore
Acknowledge(0)Amend(0)
Hi All, I am a beginner in Corporate world, so totally unaware about all these stuffs. So, I would like to know how 15 comes in this calculation. What indicates by 15 ...
From India, Kochi
Acknowledge(0)Amend(0)
From India, Kochi
Acknowledge(0)Amend(0)
[QUOTE=challagolla;1664324]Hi Ramachandram,
In your calculation, you calculated for 6 years only. What about the 4 months? We should consider the 4 months; should we take only 6 years?
Dear Challagolla Ji,
Under the Payment of Gratuity Act, 1972, qualifying service above 6 months is to be rounded off to the next full year. This means that the period below six months is to be ignored.
Thanks & regards,
From India, Pune
Acknowledge(0)Amend(0)
In your calculation, you calculated for 6 years only. What about the 4 months? We should consider the 4 months; should we take only 6 years?
Dear Challagolla Ji,
Under the Payment of Gratuity Act, 1972, qualifying service above 6 months is to be rounded off to the next full year. This means that the period below six months is to be ignored.
Thanks & regards,
From India, Pune
Acknowledge(0)Amend(0)
Mr. Baiju, First confirm what is JAFZA, are you in Dubai .............then the CalC for Gratuity will change......
From Oman, Muscat
Acknowledge(0)Amend(0)
From Oman, Muscat
Acknowledge(0)Amend(0)
Eligibility for gratuity will only arise in the case of resignation, termination, or discharge of an employee. Additionally, gratuity is only eligible for employees who have completed 5 years of service in a company. It is calculated based on 15 days' salary per year of service, with the maximum amount of gratuity being Rs. 10 lakh. The formula for gratuity calculation is as follows: current basic/26*15 * Number of years in service.
Regards,
Sheetal
From India, Karnal
Acknowledge(0)Amend(0)
Regards,
Sheetal
From India, Karnal
Acknowledge(0)Amend(0)
Dear Baijusivaran,
Are you working in Dubai Jebel Ali Free Zone? If yes, then gratuity calculation of India is not applicable there. They have their own JAFZA employment guidelines in Dubai. You can download them from the net. If you work in Jebel Ali Free Zone of Dubai and are not receiving employment guidelines, write to me on my email, and I will send them to you. I was working in JAFZA in 2006.
Thanks
From India, Delhi
Acknowledge(0)Amend(0)
Are you working in Dubai Jebel Ali Free Zone? If yes, then gratuity calculation of India is not applicable there. They have their own JAFZA employment guidelines in Dubai. You can download them from the net. If you work in Jebel Ali Free Zone of Dubai and are not receiving employment guidelines, write to me on my email, and I will send them to you. I was working in JAFZA in 2006.
Thanks
From India, Delhi
Acknowledge(0)Amend(0)
Hi friends, Please give me the full details about the gratuity calculation exactly what the meaning for 26 and 15?
From India, Mumbai
Acknowledge(0)Amend(0)
From India, Mumbai
Acknowledge(0)Amend(0)
Your friend's service length is 6 years and 4 months. A period of 6 months or more is treated as one year, and time less than 6 months will be considered as 0 years. Therefore, your friend is entitled to 6 years of gratuity only.
The formula for Gratuity is:
(BASIC + DA / 26) * 15 * Number of years in Service
(5000 / 26) * 15 * 6 = 17307.69
So, he is entitled to Rs 17308 only.
Purushottam Dass Matta
Sr. Executive Admin & HR
09352331667
From India, Alwar
Acknowledge(0)Amend(0)
The formula for Gratuity is:
(BASIC + DA / 26) * 15 * Number of years in Service
(5000 / 26) * 15 * 6 = 17307.69
So, he is entitled to Rs 17308 only.
Purushottam Dass Matta
Sr. Executive Admin & HR
09352331667
From India, Alwar
Acknowledge(0)Amend(0)
I work in a private limited company. My gross salary is Rs. 30,000 per month. The company issued a one-month notice for termination. I have been working for the last 9 years. The company deducts 12% for my PF on Rs. 6500. Now, how much gratuity will they pay, and on what basis do they calculate it?
Jagan
From India, Kakinada
Acknowledge(0)Amend(0)
Jagan
From India, Kakinada
Acknowledge(0)Amend(0)
Dear one what is 15 in this formula 5000/26x15x6= Rs.17308 5000 is basic salary 26 is total earned days of salary 6 is gratuity years and what will the15
From Pakistan, Faisalabad
Acknowledge(0)Amend(0)
From Pakistan, Faisalabad
Acknowledge(0)Amend(0)
Dear All,
It seems a lot of people are confused about the numbers 15 and 26 used for the calculation of payments. Let me clarify the same.
As per the Gratuity Act of 1972, paragraph 2 states, "For every completed year of service or part thereof in excess of six months, the employer shall pay gratuity to an employee at the rate of fifteen days' wages based on the rate of wages last drawn by the employee concerned."
This means that for every year of service, 15 days' wages are payable. To calculate the daily rate of wages, the monthly wages should be divided by 26 days (excluding Sundays out of a 30-day month).
The formula for calculating the payment of gratuity is: Current wages x Number of years in service x 15/26 = Payment of Gratuity.
Regards,
Kumar Anand
HR - SAMSUNG
From Korea
Acknowledge(0)Amend(0)
It seems a lot of people are confused about the numbers 15 and 26 used for the calculation of payments. Let me clarify the same.
As per the Gratuity Act of 1972, paragraph 2 states, "For every completed year of service or part thereof in excess of six months, the employer shall pay gratuity to an employee at the rate of fifteen days' wages based on the rate of wages last drawn by the employee concerned."
This means that for every year of service, 15 days' wages are payable. To calculate the daily rate of wages, the monthly wages should be divided by 26 days (excluding Sundays out of a 30-day month).
The formula for calculating the payment of gratuity is: Current wages x Number of years in service x 15/26 = Payment of Gratuity.
Regards,
Kumar Anand
HR - SAMSUNG
From Korea
Acknowledge(0)Amend(0)Looking for something specific? - Join & Be Part Of Our Community and get connected with the right people who can help. Our AI-powered platform provides real-time fact-checking, peer-reviewed insights, and a vast historical knowledge base to support your search.
Employee Benefits.doc
SBT Vs Asst. Labour Commissioner- Gratuity dismissed employee-LTS.PD F