This is eswar working as Accountant,one of the employee working from 6 years 3 months and 10 days now he resigned the job we have to payable gratuity to him, his Basic salary is Rs.7604 and DA is Rs.3042 at the time of he leave the job.
i am requesting please tell me how much we have to pay with complete calculation.
From India, Bangalore
i am requesting please tell me how much we have to pay with complete calculation.
From India, Bangalore
Formula : Gratuity Calculation= / 26 Amount should approximately be Rs 38629. Kindly cross check before payment.
From India, Pune
3131From India, Pune
we have to pay 6.3 or 6 years ?? kindly tell me which is the right calculation as per Gratuity Act.
From India, Bangalore
From India, Bangalore
The period should be 6 years for calculating gratuity.(period in excess of six months is treated as an year)
7604(Basic) + 3042(DA) multiplied by 15 days wages * completed years of service (6) divided by 26 days will be the amount of gratuity.
From India, Pune
7604(Basic) + 3042(DA) multiplied by 15 days wages * completed years of service (6) divided by 26 days will be the amount of gratuity.
From India, Pune
Gratuity Calculation= [ (Basic Pay + D.A) x 15 days x No. of years of service ] / 26 Where,
D.A = Dearness Allowance.
End of Service Benefits Eligibility :
1. Any person employed on wages/salary.
2. At the time of retirement or resignation or on superannuation, an employee should have rendered continuous service of not less than five years.
3. Payable without completion of five years only when death and disablement.
From India, Pune
D.A = Dearness Allowance.
End of Service Benefits Eligibility :
1. Any person employed on wages/salary.
2. At the time of retirement or resignation or on superannuation, an employee should have rendered continuous service of not less than five years.
3. Payable without completion of five years only when death and disablement.
From India, Pune
Thank you NATHRAO you are spend time for clear my doubts and if you don’t mind can you forward to me gratuity eligibility rules if you available.
From India, Bangalore
From India, Bangalore
Some extracts of Payment of Gratuity Act
Applicabilty of The Act
The Payment of Gratuity Act, 1972 is applicable to the following:
every factory, mine, oilfield, plantation, port and railway company;
every shop or establishment within the meaning of any law in which ten(10) or more persons are employed, or were employed, on any day of the preceding twelve(12) months;
such other establishments or class of establishments, in which ten or more employees are employed, or were employed, on any day of the preceding twelve months, as the Central Government may, by notification, specify in this behalf.
Once the Payment of Gratuity Act becomes applicable to an organization, the Act would continue to be applicable to the same despite the fact that the number of employees gets reduced than the minimum prescribed.
An employee is any person (other than an apprentice) employed on wages, in any establishment, factory, mine, oilfield, plantation, port, railway company or shop, to do any skilled, semi-skilled, or unskilled, manual, supervisory, technical or clerical work, whether the terms of such employment are expressed or implied and whether or not such person is employed in a managerial or administrative capacity, but does not include any such person who holds a post under the Central Government or a State Government and is governed by any other Act or by any rules providing for payment of gratuity.
An employee who has rendered not less than five years of service becomes entitled to gratuity on his superannuation or on his retirement or resignation or on his death or disablement.
The pre requisite of completion of continuous service of five years shall not be necessary where the termination of the employment of any employee is due to death or disablement. Disablement in such a case would mean disablement which incapacitates an employee for the work which he was capable of performing before the accident or disease resulting in such disablement.
Meaning of Continuous Service
Gratuity shall be payable to an employee on the termination of his employment after he has rendered continuous service for not less than five years.
Gratuity payment is exempt from tax
Employer has to pay gratuity within 30 days from the date it becomes payable.
These are some important feature of gratuity payment.
From India, Pune
Applicabilty of The Act
The Payment of Gratuity Act, 1972 is applicable to the following:
every factory, mine, oilfield, plantation, port and railway company;
every shop or establishment within the meaning of any law in which ten(10) or more persons are employed, or were employed, on any day of the preceding twelve(12) months;
such other establishments or class of establishments, in which ten or more employees are employed, or were employed, on any day of the preceding twelve months, as the Central Government may, by notification, specify in this behalf.
Once the Payment of Gratuity Act becomes applicable to an organization, the Act would continue to be applicable to the same despite the fact that the number of employees gets reduced than the minimum prescribed.
An employee is any person (other than an apprentice) employed on wages, in any establishment, factory, mine, oilfield, plantation, port, railway company or shop, to do any skilled, semi-skilled, or unskilled, manual, supervisory, technical or clerical work, whether the terms of such employment are expressed or implied and whether or not such person is employed in a managerial or administrative capacity, but does not include any such person who holds a post under the Central Government or a State Government and is governed by any other Act or by any rules providing for payment of gratuity.
An employee who has rendered not less than five years of service becomes entitled to gratuity on his superannuation or on his retirement or resignation or on his death or disablement.
The pre requisite of completion of continuous service of five years shall not be necessary where the termination of the employment of any employee is due to death or disablement. Disablement in such a case would mean disablement which incapacitates an employee for the work which he was capable of performing before the accident or disease resulting in such disablement.
Meaning of Continuous Service
Gratuity shall be payable to an employee on the termination of his employment after he has rendered continuous service for not less than five years.
Gratuity payment is exempt from tax
Employer has to pay gratuity within 30 days from the date it becomes payable.
These are some important feature of gratuity payment.
From India, Pune
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Payment of Gratuity Act, 1972 & The Rules.ppt
THE PAYMENT OF GRATUITY ACT 1972.doc