Hi. Friends and Sir
please tell me
1 what is the rate of contrubition for calculation of gratuity
2 where the employer deposit the contribution or its deposit monthly half yearly or yearly and once time.
3 if employer complete 5 year of incorporation than its a compluseary to act applies or not
From India, Delhi
1please tell me
1 what is the rate of contrubition for calculation of gratuity
2 where the employer deposit the contribution or its deposit monthly half yearly or yearly and once time.
3 if employer complete 5 year of incorporation than its a compluseary to act applies or not
From India, Delhi
Dear Shahzada,
Following are your answers -
1) what is the rate of contrubition for calculation of gratuity -
The rate for the gratuity will be -
gratuity= Basic + DA (at the time of living) / 26 x No of years of service x 15.
Ex. If 'A' employees basic is Rs. 5000.00, DA is 500.00, No. of yrs. of service is 6 yrs then his gratuity amount will be,
Gratuity = 5000+500 / 26 x 6x15
15 days is the no. of days wages to be paid for every completed continuous year of service.
2)here the employer deposit the contribution or its deposit monthly half yearly or yearly and once time. -
Here the employer takes the group gratuity policy for an employees and they pays the annually premium for the gratuity.
3)if employer complete 5 year of incorporation than its a compluseary to act applies or not -
If employee completes 5 yrs. of service, then act applies.
I hope the answer solves ur queries.
Thanks,
Amit
From India, Mumbai
Following are your answers -
1) what is the rate of contrubition for calculation of gratuity -
The rate for the gratuity will be -
gratuity= Basic + DA (at the time of living) / 26 x No of years of service x 15.
Ex. If 'A' employees basic is Rs. 5000.00, DA is 500.00, No. of yrs. of service is 6 yrs then his gratuity amount will be,
Gratuity = 5000+500 / 26 x 6x15
15 days is the no. of days wages to be paid for every completed continuous year of service.
2)here the employer deposit the contribution or its deposit monthly half yearly or yearly and once time. -
Here the employer takes the group gratuity policy for an employees and they pays the annually premium for the gratuity.
3)if employer complete 5 year of incorporation than its a compluseary to act applies or not -
If employee completes 5 yrs. of service, then act applies.
I hope the answer solves ur queries.
Thanks,
Amit
From India, Mumbai
dear Amit,
thanks for your info. Pl clarify ... if an employee completes 5 years 5 months and 15 days (for Example) then it should be rounded off to nearest whole number i.e 5 years only and again if he complets 5 years 7 months then it should be treated as 6 years (i.e rounded off to nearest whole digit)
Pl clarify
REgards
Gururaj.
From India, Bangalore
thanks for your info. Pl clarify ... if an employee completes 5 years 5 months and 15 days (for Example) then it should be rounded off to nearest whole number i.e 5 years only and again if he complets 5 years 7 months then it should be treated as 6 years (i.e rounded off to nearest whole digit)
Pl clarify
REgards
Gururaj.
From India, Bangalore
Dear Gururaj,
If employee completes the 240 days of the any service of year then it should be counted as a round year. Suppose employee has completed 4 yrs and 241 days as a continuous service then he is eligible for the gratuity of total 5 yrs. The same calculation should follow for the consecutive completed years of service.
Hope it is clear.
Thanks,
Amit
From India, Mumbai
If employee completes the 240 days of the any service of year then it should be counted as a round year. Suppose employee has completed 4 yrs and 241 days as a continuous service then he is eligible for the gratuity of total 5 yrs. The same calculation should follow for the consecutive completed years of service.
Hope it is clear.
Thanks,
Amit
From India, Mumbai
dear amit,
Thank very much for sharing this knowledge. Actually i was under the impression that if an employee has completed more than 6 months of continous service the same should be rounded off to next higher digit. i.e 1 year.
Now it is clear to me.
thanks for clarifying my doubt.
Further in you earlier post, in response to some New Joinee as HR manager, you have explaied about immediate role and responsibilty for a new HR manager, if you could kindly recall, so many members have requested u to forwad them HR MIS. Can you kindly send the same to me also @
(if u already sent the same to me pl. ignore the same)
REgards
Gururaj.
From India, Bangalore
Thank very much for sharing this knowledge. Actually i was under the impression that if an employee has completed more than 6 months of continous service the same should be rounded off to next higher digit. i.e 1 year.
Now it is clear to me.
thanks for clarifying my doubt.
Further in you earlier post, in response to some New Joinee as HR manager, you have explaied about immediate role and responsibilty for a new HR manager, if you could kindly recall, so many members have requested u to forwad them HR MIS. Can you kindly send the same to me also @
REgards
Gururaj.
From India, Bangalore
Dear Amit,
What happens in the case where an employee has served an organinzation for let say 10 yrs and leaves. Joins some other organization but after two years joins back his earlier organization and works for close to 4.5 yrs and leaves again. In this case his sevice will be counted as 14.5 yrs or 10yrs separate and 4.5 yrs separate???
Is he elligible for gratuity in his secont stint?
rgds
Anup
From India, Mumbai
What happens in the case where an employee has served an organinzation for let say 10 yrs and leaves. Joins some other organization but after two years joins back his earlier organization and works for close to 4.5 yrs and leaves again. In this case his sevice will be counted as 14.5 yrs or 10yrs separate and 4.5 yrs separate???
Is he elligible for gratuity in his secont stint?
rgds
Anup
From India, Mumbai
Dear Anup,
As employee has left the service and again rejoining his services in the organization that means he is considered as a new employment. So for second time new rule of gratuity will be applicable for him.
for 4.5 yrs. of service , he will not be eligible for the gratuity 2nd time.
Hope it is clear.
Thanks,
AMit
From India, Mumbai
As employee has left the service and again rejoining his services in the organization that means he is considered as a new employment. So for second time new rule of gratuity will be applicable for him.
for 4.5 yrs. of service , he will not be eligible for the gratuity 2nd time.
Hope it is clear.
Thanks,
AMit
From India, Mumbai
dear shahazada
your first question is confusing?
you are asking for the contribution or you are asking the calsculation of
gratuity. if it is calculation then amits reply is ok.
regards
jaychandran :?:
From India, Panvel
your first question is confusing?
you are asking for the contribution or you are asking the calsculation of
gratuity. if it is calculation then amits reply is ok.
regards
jaychandran :?:
From India, Panvel
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FORM-F-NOMINATI ON OF GRATUITY.pdf
Gratuity Form I.doc