Dear meetca,
A lot of companies in our country are still without DA component in their salary packages. To compensate the employees against the increase in the price index, they provide a varying lumsum in between 15% to 30% of existing Basic pay annually as an increament basis on the individual's performance. In this case only basic pay is considered for various obligations including PF, Bonus, Gartiuty as well as Notice pay and calculatiion of EL/PL encashment.
with regards.
R.K.SINGH
From India, Delhi
8A lot of companies in our country are still without DA component in their salary packages. To compensate the employees against the increase in the price index, they provide a varying lumsum in between 15% to 30% of existing Basic pay annually as an increament basis on the individual's performance. In this case only basic pay is considered for various obligations including PF, Bonus, Gartiuty as well as Notice pay and calculatiion of EL/PL encashment.
with regards.
R.K.SINGH
From India, Delhi
For calculating PF: BASIC+DA has to be considered
For calculating EL: It differs form organisation to organisation but general practice is BASIC+DA divided by 26 multiplied by number of days of EL to be encashed
Regards,
Swapan
From India, Bokaro
For calculating EL: It differs form organisation to organisation but general practice is BASIC+DA divided by 26 multiplied by number of days of EL to be encashed
Regards,
Swapan
From India, Bokaro
For calculating gratuity: BASIC+DA divided by 26 multiplied by 15multiplied by number of years of service where six months or more is considered as one complete year & less than six months is not considered. Gratuity is payable only when an employee leaves the organisation & must have completed five years of continuous service in that organisation.
Example for calculating gratuity:
BASIC+ DA=5000
No.of yrs in service=5 yrs & 8 months ( here 6 yrs is to be considered)
Gratuity payable= [5000/26]x 15 x 6 =17307.69
Rounded off to Rs.17308.00
Hope its clear , dear Sanju.
Regards,
Swapan
From India, Bokaro
Example for calculating gratuity:
BASIC+ DA=5000
No.of yrs in service=5 yrs & 8 months ( here 6 yrs is to be considered)
Gratuity payable= [5000/26]x 15 x 6 =17307.69
Rounded off to Rs.17308.00
Hope its clear , dear Sanju.
Regards,
Swapan
From India, Bokaro
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PF on PL SC.doc