Please tell me my company one employee is resign. He work 5 years 2 month I am calculated his gratuity in following formula last month payment/26 days x 15 days x 5 years. it is a Wright or wrong. I am consider his service is 5 years but he worked 5 years 2 month. This condition is Wright or wrong & tell me which record i am maintain.
From India, Nasik
From India, Nasik
Dear Member,
We are to consider rate of wages last drawn as defined at section 2(s) of the P G act, 1972. Other points are correct. You are to give intimation regarding disbursement of gratuity amount to an employee to the Controlling Authority of your area. For further details plz go through section 4 of this Act.
R.N.Khola
From India, Delhi
363We are to consider rate of wages last drawn as defined at section 2(s) of the P G act, 1972. Other points are correct. You are to give intimation regarding disbursement of gratuity amount to an employee to the Controlling Authority of your area. For further details plz go through section 4 of this Act.
R.N.Khola
From India, Delhi
Your method of calculation is correct provided The Payment of Gratuity Act is applicable to your Organisation. For calculation, some organisations will take the last month salary. But some others will take average of last twelve months. This you check with your Organisation.
Abbas.P.S
From India, Bangalore
Abbas.P.S
From India, Bangalore
Please tell me I am give intimation regarding disbursement of gratuity amount to an employee to the Controlling Authority of your area. Which persons are responsible to controlling Authority. Persons is company Director or any government inspector
From India, Nasik
From India, Nasik
Dear Member,
Employer as defined under section 2(f) is responsible to sent notices/intimation to the Controlling Authority of the area. The employer is also required to specify the name of the officer with designation to receive notices under this Act on his behalf.
[SIZE=1]R.N.Khola
[B][COLOR=#3366ff][FONT=Verdana]
From India, Delhi
Employer as defined under section 2(f) is responsible to sent notices/intimation to the Controlling Authority of the area. The employer is also required to specify the name of the officer with designation to receive notices under this Act on his behalf.
[SIZE=1]R.N.Khola
[B][COLOR=#3366ff][FONT=Verdana]
From India, Delhi
Dear Yogesh,
You are right and ur formula for calculation of gratuity is also right and as per payment of Gratuity Act 1972, we have to consider more then six months service in one year suppose if anyone worked 5 year & 7 months then it will be deemed 6 year and 5 year and 6 month will be deemed 5 year.
I hope now your doubt will be cleared...
Thanks & Regards
Sunil Sharma
Sr. Executive HR
more at https://www.citehr.com/303251-about-...#ixzz18HIdjIKd
From India, New Delhi
You are right and ur formula for calculation of gratuity is also right and as per payment of Gratuity Act 1972, we have to consider more then six months service in one year suppose if anyone worked 5 year & 7 months then it will be deemed 6 year and 5 year and 6 month will be deemed 5 year.
I hope now your doubt will be cleared...
Thanks & Regards
Sunil Sharma
Sr. Executive HR
more at https://www.citehr.com/303251-about-...#ixzz18HIdjIKd
From India, New Delhi
Salary under the payment of Gratuity Act means only Basic and DA/VDA. Hope you have taken these components only. The remaining calculation is correct.Pl remember that you have to pay the gratuity with in 15 days from the receipt of the prescribed form under the Gratuity act from the employee requesting you to pay the gratuity.
D. Phani Kumar
Sr. Manager- P&A
Zuari Cement Ltd.
D. Phani Kumar
Sr. Manager- P&A
Zuari Cement Ltd.
Dear Yogesh,
Your calculations are absolutely "RIGHT" not "WRIGHT". (Must be an inadevrtant spelling error). Yes, as Mr. Khola has rightly stated wages for calculation purposes will include only Basic Pay & DA.
Best Wishes,
Vasant Nair
From India, Mumbai
Your calculations are absolutely "RIGHT" not "WRIGHT". (Must be an inadevrtant spelling error). Yes, as Mr. Khola has rightly stated wages for calculation purposes will include only Basic Pay & DA.
Best Wishes,
Vasant Nair
From India, Mumbai
Gratuity:
1. Eligibility: only on competition of 5 years of service.
(provided the incumbent shall have 240 days attendance in a calendar year.)
2. Formula: Basic +DA/26 (wages last drawn) X 15 X number of years of service.
(@ 4.86% on Basic + DA per month - for C T C calculation)
3. Maximum Gratuity payable: Rs. 10.00 lakhs.
4. Computation of gratuity amount:
After arriving completed years of service, if a fraction of year comes;
a. Excess of six months: Will be taken as one more year i.e., completed years
of service + one year
b. Less than six months, over and above months (01 - 06 months) shall be
ignored and shall limited to completed years of service only.
c. In the case of a piece-rated employee, daily wages shall be computed on
the average of the total wages received by him for a period of three months
immediately preceding the termination of his employment.
5. In case of death of any employee, the minimum 5 years of continuous service is
not necessary and is eligible for gratuity for the period he worked in the
organization.
From India, Hyderabad
1. Eligibility: only on competition of 5 years of service.
(provided the incumbent shall have 240 days attendance in a calendar year.)
2. Formula: Basic +DA/26 (wages last drawn) X 15 X number of years of service.
(@ 4.86% on Basic + DA per month - for C T C calculation)
3. Maximum Gratuity payable: Rs. 10.00 lakhs.
4. Computation of gratuity amount:
After arriving completed years of service, if a fraction of year comes;
a. Excess of six months: Will be taken as one more year i.e., completed years
of service + one year
b. Less than six months, over and above months (01 - 06 months) shall be
ignored and shall limited to completed years of service only.
c. In the case of a piece-rated employee, daily wages shall be computed on
the average of the total wages received by him for a period of three months
immediately preceding the termination of his employment.
5. In case of death of any employee, the minimum 5 years of continuous service is
not necessary and is eligible for gratuity for the period he worked in the
organization.
From India, Hyderabad
Dear Mr Yogesh
1. Please follow the guidelines given by Mr Yagnaiah K of Hyderabad as above
2. Sorry to tell you - please do some home work to improve your English language (it speaks very bad about HR Executives) - how are you going to manage your people if you write "wright for RIGHT and cannot write one grammatically correct sentence???
Regards
K.Ramachandra
1. Please follow the guidelines given by Mr Yagnaiah K of Hyderabad as above
2. Sorry to tell you - please do some home work to improve your English language (it speaks very bad about HR Executives) - how are you going to manage your people if you write "wright for RIGHT and cannot write one grammatically correct sentence???
Regards
K.Ramachandra
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FORM-F-NOMINATI ON OF GRATUITY.pdf
Gratuity Form I.doc