Hi, I completed 5.6 years in the organization. I also understand that Gratuity Rule is = Last Basic/26Days X 15 Days X Number of working years. However, my questions are based on my understanding:-
a). In the Gratuity rule 26 days is taken on the basis of 26 working days in the month. However, in our organization, Saturday/Sunday are considered weekly offs. So calculation should be on 22 workings days or 26 workings. Pleas guide.
b). I completed 5 years and 6 months and leaving the organization in next 20 days. Please help me to understand if gratuity will get calculated on the basis of 5 years or 5 years and 6 months.
Waiting to hear soon.
Thanks,
Amit
From India, New Delhi
a). In the Gratuity rule 26 days is taken on the basis of 26 working days in the month. However, in our organization, Saturday/Sunday are considered weekly offs. So calculation should be on 22 workings days or 26 workings. Pleas guide.
b). I completed 5 years and 6 months and leaving the organization in next 20 days. Please help me to understand if gratuity will get calculated on the basis of 5 years or 5 years and 6 months.
Waiting to hear soon.
Thanks,
Amit
From India, New Delhi
Dear Amit,
Gratuity = salary*15/26*No. of years service. If your service is 5 years and 6 months, it will be rounded down to 5 years and for 5 years 6 months and 1 day, it will be rounded up to 6 years.
Abbas.P.S
From India, Bangalore
517Gratuity = salary*15/26*No. of years service. If your service is 5 years and 6 months, it will be rounded down to 5 years and for 5 years 6 months and 1 day, it will be rounded up to 6 years.
Abbas.P.S
From India, Bangalore
Agreed with Mr Abbas.P.S. The calculation of gratuity shall be by the formula mentioned however If DA is applicable it shall be Basic+DA as per last drawn salary
From India, Chandigarh
From India, Chandigarh
Gratuity formula is framed by the Government under Payment of Gratuity Act. We should follow this formula irrespective of having different No. of working days in a month in different companies.
Regards,
Ganesh.H.N
From India, Bangalore
Regards,
Ganesh.H.N
From India, Bangalore
Dear Amit ji,
To the point answers to your questions are as under:
As per the POG Act, dividing factor to monthly salary is 26 days. Your organisation works for 22 days but you are paid for 30/31 days as monthly salary including holidays. Therefore there is no question of having dividing factor of 22 days.
As per POG Act, for computation of no. of years for Gratuity, 6 months and above is considered as full year. So your Gratuity will be calculated for 6 years.
From India, Mumbai
To the point answers to your questions are as under:
As per the POG Act, dividing factor to monthly salary is 26 days. Your organisation works for 22 days but you are paid for 30/31 days as monthly salary including holidays. Therefore there is no question of having dividing factor of 22 days.
As per POG Act, for computation of no. of years for Gratuity, 6 months and above is considered as full year. So your Gratuity will be calculated for 6 years.
From India, Mumbai
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