Hi All, I hope you are in good health..
I am serving to IT Software company as HR Manager for 7 years. Our Company comes under Shop & Establishment Act, i want to know that what will be the correct calculation for EL encasement at the time of full & Final settlement of the employee.
IS IT (basic+DA)/26*no of Earned Leave
or
(Basic+DA)/30*no of Earned Leave. Please See.
From India, New Delhi
1I am serving to IT Software company as HR Manager for 7 years. Our Company comes under Shop & Establishment Act, i want to know that what will be the correct calculation for EL encasement at the time of full & Final settlement of the employee.
IS IT (basic+DA)/26*no of Earned Leave
or
(Basic+DA)/30*no of Earned Leave. Please See.
From India, New Delhi
Division of basic + DA by 26 days to arrive at per diem avg is right for gratuity purposes. Whereas for other purpose it is good to adopt 30 days average.
From India, Bangalore
From India, Bangalore
Thanks for the valuable response.is this mentioned under Shop & Establishment Act??if yes please help me in which section it is there.
From India, New Delhi
From India, New Delhi
For calculating the per day wage of the employee, the monthly wage (last drawn Basic + Dearness Allowance) is divided by 26 and the result is multiplied by 15 x the number of years of service; i.e. Gratuity = (Basic + DA) x 15/26 x number of years.
Gratuity is dependent upon the total number of years served in the company and the last drawn salary. Then, Gratuity = A*B*15/26 ; 15 being wages for 15 days and 26 being the days of the month. For further reading links-
https://indiankanoon.org/doc/89697729/
https://indiankanoon.org/docfragment...Input=gratuity %20only %20for%2026%20days
https://www.citehr.com/85515-monthly...-30-a-pg2.html
Also read Sec.4(2) Explanation thereto of the Gratuity Act. extract attached.
From India, Bangalore
Gratuity is dependent upon the total number of years served in the company and the last drawn salary. Then, Gratuity = A*B*15/26 ; 15 being wages for 15 days and 26 being the days of the month. For further reading links-
https://indiankanoon.org/doc/89697729/
https://indiankanoon.org/docfragment...Input=gratuity %20only %20for%2026%20days
https://www.citehr.com/85515-monthly...-30-a-pg2.html
Also read Sec.4(2) Explanation thereto of the Gratuity Act. extract attached.
From India, Bangalore
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