Hi, What is the meaning of Gratuity??? Please explain in detail since I do not have any idea for this. Regards, Shweta
From India, New Delhi
4From India, New Delhi
Hi Shwetha,
It is amount that will be paid for your continuous service of 5years in a single company for a minimum of 240 days every year. This will be mainly calculated on your basic which you will be having in your last month salary. I have attached a reference file for you which contains the details of how to calculate Gratuity. Try it out with the details in sheet 2. I hope this will be of some use for you. Do get back to me in case of any clarifications in the attached file.
Regards
Amith R.
From India, Bangalore
It is amount that will be paid for your continuous service of 5years in a single company for a minimum of 240 days every year. This will be mainly calculated on your basic which you will be having in your last month salary. I have attached a reference file for you which contains the details of how to calculate Gratuity. Try it out with the details in sheet 2. I hope this will be of some use for you. Do get back to me in case of any clarifications in the attached file.
Regards
Amith R.
From India, Bangalore
Hi Amith R Murthy Rest all is OK but where does that 15 and 26 comes from? PLease elaborate. I hope I am not expecting too much!!! Regards, Shweta
From India, New Delhi
From India, New Delhi
Hi Shwetha,
Not at all. Let me clear your doubt 15 is considered as the half month salary and 26 is considered to be the number of working days in a month excluding 4 sundays which you will have in most of the months. Hope now it is clear for you.
Regards
Amith R.
From India, Bangalore
Not at all. Let me clear your doubt 15 is considered as the half month salary and 26 is considered to be the number of working days in a month excluding 4 sundays which you will have in most of the months. Hope now it is clear for you.
Regards
Amith R.
From India, Bangalore
It is a retirement benefit to be paid to the employees, usually at the time of retirement. One become eligible for gratuity after completion of 5 years of service.
From India, Mumbai
From India, Mumbai
Thanks Amith, Plz update that is it applicabe only for government employees or private employees too? Also, Under what circumstances, it can be cancelled? Regards, Shweta
From India, New Delhi
From India, New Delhi
Welcome Shwetha,
It is applicable for private employees also and according to me it can canceled if an employee as not worked minimum of 240 days in a year for any of the five years(other members correct me if i am wrong) apart from this particular case even i don't have any idea.
One more thing to be added is if an employee quits the company just 2 or 3 months before completion of five years than also he can still get Gratuity if he as worked for 240 days in the fifth year. Hope this is clear for you now.
Regards
Amith R.
From India, Bangalore
It is applicable for private employees also and according to me it can canceled if an employee as not worked minimum of 240 days in a year for any of the five years(other members correct me if i am wrong) apart from this particular case even i don't have any idea.
One more thing to be added is if an employee quits the company just 2 or 3 months before completion of five years than also he can still get Gratuity if he as worked for 240 days in the fifth year. Hope this is clear for you now.
Regards
Amith R.
From India, Bangalore
Hi Swetha!
At the top of the Home page of this site you will find Type search query. Just type the word " gratuity " there and go for it. You will find many related questions and answers on the subjec which are sure to enlighten you on several dimensions.
Ashok
From India, Bhubaneswar
At the top of the Home page of this site you will find Type search query. Just type the word " gratuity " there and go for it. You will find many related questions and answers on the subjec which are sure to enlighten you on several dimensions.
Ashok
From India, Bhubaneswar
Hai all,
Adding to our friends point i would like share the following.
Gratuity : Gratuity is amount payable by the employer to the employee for his long and meritorious service in any company.
Gratuity is payable under the payment of wages act.
It is calculated as follows:
Basic wages : Basic + DA+VDA
Last drawn salary : One month salary suppose if he worked only 6 days during the last month. Then we have to take the previous month salary.
Suppose if he worked less than 15 days than we have to take last six months average salary.
No. of year of Service : Total no. of year service from the Present company. If he worked two or more companies and total no. of year of service is 20 then we have to take the present companies total no. of year of service only. say 10 years.
Gratuity : Last drawn salary X No. of Year of service X 15/26.
One condition is he should minimum contiunous year of service is 5 years.
Minimum 240 days per year.
Suppose a person has worked 10 years. But he has not worked 240 days for two years than we need not to pay gratuity for two years. but we have to prove that he has not worked for 240 days by giving show cause notice and other relevant documents. Normally employer will not deduct gratuity for a particular year if he has not worked less than 240 days.
If a person 4 years and 10 months than we have to see whether he has worked 240 days for the last or not. Since 240 days in a year is definied in Factories act 1948.
I hope i made it clear all the doubts. commits if any
With regards
K.V.Selvaraj.
From India, Coimbatore
Adding to our friends point i would like share the following.
Gratuity : Gratuity is amount payable by the employer to the employee for his long and meritorious service in any company.
Gratuity is payable under the payment of wages act.
It is calculated as follows:
Basic wages : Basic + DA+VDA
Last drawn salary : One month salary suppose if he worked only 6 days during the last month. Then we have to take the previous month salary.
Suppose if he worked less than 15 days than we have to take last six months average salary.
No. of year of Service : Total no. of year service from the Present company. If he worked two or more companies and total no. of year of service is 20 then we have to take the present companies total no. of year of service only. say 10 years.
Gratuity : Last drawn salary X No. of Year of service X 15/26.
One condition is he should minimum contiunous year of service is 5 years.
Minimum 240 days per year.
Suppose a person has worked 10 years. But he has not worked 240 days for two years than we need not to pay gratuity for two years. but we have to prove that he has not worked for 240 days by giving show cause notice and other relevant documents. Normally employer will not deduct gratuity for a particular year if he has not worked less than 240 days.
If a person 4 years and 10 months than we have to see whether he has worked 240 days for the last or not. Since 240 days in a year is definied in Factories act 1948.
I hope i made it clear all the doubts. commits if any
With regards
K.V.Selvaraj.
From India, Coimbatore
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FORM-F-NOMINATI ON OF GRATUITY.pdf
Gratuity Form I.doc