Hai friends, Can you clarify about calculation of Gratuity, with the salary structure as given below. Basic Other Allowances Supperannuation allowances Conveyance allowances
From India, Coimbatore
From India, Coimbatore
Dear Ms. Lalita,
Mr. Sethupathy's calculation is right. Repeat Basic + DA / 26 days x 15 days for every completed year of service.
However please note you MUST HAVE COMPLETED FULL FIVE (5) YEARS OF SERVICE with the present Company / Organization. Even one day less service - please note you are not eligible for Gratuity as per Gratuity Act.
The hearsay of 240+ days will be calculated as one full year service is all applicable only after completion of 5 full years of service with the Company / Organization. In other words if you work for more than 5 years and having put up 240 days attendance in that financial year, then the calculation should be taken as one year (i.e. 5+...+...) etc.
I hope to have clarified your query may be to your satisfaction (in case you have completed 5 full years of service) or may not be to your satisfaction (in case case you have NOT completed 5 years service because the Gratuity Act does not say so!).
Regards,
Sundararaman
From India, Madras
66Mr. Sethupathy's calculation is right. Repeat Basic + DA / 26 days x 15 days for every completed year of service.
However please note you MUST HAVE COMPLETED FULL FIVE (5) YEARS OF SERVICE with the present Company / Organization. Even one day less service - please note you are not eligible for Gratuity as per Gratuity Act.
The hearsay of 240+ days will be calculated as one full year service is all applicable only after completion of 5 full years of service with the Company / Organization. In other words if you work for more than 5 years and having put up 240 days attendance in that financial year, then the calculation should be taken as one year (i.e. 5+...+...) etc.
I hope to have clarified your query may be to your satisfaction (in case you have completed 5 full years of service) or may not be to your satisfaction (in case case you have NOT completed 5 years service because the Gratuity Act does not say so!).
Regards,
Sundararaman
From India, Madras
Dear All,
One correction in Mr. Sundaraman's view, as per the judgment of Madras HC, if you have completed 240 days in the fifth year then it is deemed to be considered as completed 5 years of service and you are eligible for the gratuity.
But many us are unaware that 240 days of working in every year is absolutely necessary to fulfill the norms of continuous service in that particular year -even in the first four years of services- which please be noted.
After completion of five years of services, as Mr.Sundar stated 6 months and above are rounded off as one year and less than 6 months are neglected.
For understanding this clearly I have enclosed the M-HC judgment copy and rules on 240 days for your reference.
Hope I made it clear.
S.Sethupathy
Excellent HR Services,
(PAN India)
Erode.
From India, Coimbatore
One correction in Mr. Sundaraman's view, as per the judgment of Madras HC, if you have completed 240 days in the fifth year then it is deemed to be considered as completed 5 years of service and you are eligible for the gratuity.
But many us are unaware that 240 days of working in every year is absolutely necessary to fulfill the norms of continuous service in that particular year -even in the first four years of services- which please be noted.
After completion of five years of services, as Mr.Sundar stated 6 months and above are rounded off as one year and less than 6 months are neglected.
For understanding this clearly I have enclosed the M-HC judgment copy and rules on 240 days for your reference.
Hope I made it clear.
S.Sethupathy
Excellent HR Services,
(PAN India)
Erode.
From India, Coimbatore
Dear Mr. Sethupathy
Thanks for providing the Judgement copy. However I will check with my Friends who are specialists in I.R. and will revert back to you, as lot of difference of opinion is there in this issue and still Gratuity is payable only after completion of 5 years only or 4 yers + 2140 days+ is enough !
Will get back to you soon on this with further more clarification.
REgards,
Sundararaman
From India, Madras
Thanks for providing the Judgement copy. However I will check with my Friends who are specialists in I.R. and will revert back to you, as lot of difference of opinion is there in this issue and still Gratuity is payable only after completion of 5 years only or 4 yers + 2140 days+ is enough !
Will get back to you soon on this with further more clarification.
REgards,
Sundararaman
From India, Madras
Dear Mr. Sethupathy,
Further to my above mail - I hereby give below the reply from Senior Moderator J.S. Malikji in the CiteHR Forum on similar query:
Quote:
Subject - Re: gratuity calculation
dear
your husband has not completed 5 years of service ,so he is not entilte to get gratuity.
some people says after the judgement of madras high court that if individual has completed 240 days
in fifth year ,than individual becomes entilte for gratuity.But it is not correct because on the basis of one judgement there is no change in gratuity act.till the time gratuity act says that one is entitle to get gratuity after having 5 years of service.
__________________
Regards
J S Malik
Noida(U. P.)
mob-9810557181
unquote:
Still I have sought clarification from my I.R. Friends on this specific issue. As of now I stand with Gratuity Eligibility only on completion 5 full years of service. 240 days to be treated as one full year comes only after 5 years of completion - i.e. for the 6th year service onwards.
Regards,
Sundararaman
From India, Madras
Further to my above mail - I hereby give below the reply from Senior Moderator J.S. Malikji in the CiteHR Forum on similar query:
Quote:
Subject - Re: gratuity calculation
dear
your husband has not completed 5 years of service ,so he is not entilte to get gratuity.
some people says after the judgement of madras high court that if individual has completed 240 days
in fifth year ,than individual becomes entilte for gratuity.But it is not correct because on the basis of one judgement there is no change in gratuity act.till the time gratuity act says that one is entitle to get gratuity after having 5 years of service.
__________________
Regards
J S Malik
Noida(U. P.)
mob-9810557181
unquote:
Still I have sought clarification from my I.R. Friends on this specific issue. As of now I stand with Gratuity Eligibility only on completion 5 full years of service. 240 days to be treated as one full year comes only after 5 years of completion - i.e. for the 6th year service onwards.
Regards,
Sundararaman
From India, Madras
I have joined on 23 dec 2005 and got relieved on 31.10.2010. But we have only sunday holiday. No LOP. Pl. suggest about my eligibility for gratuity
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Regards,
Bala
From Belgium, Wilrijk
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Regards,
Bala
From Belgium, Wilrijk
Thank u all for sending clarification on my question. I have another question now.
In that above salary structure, company has not mention the DA details, may be they purposefully omitted the words DA. But they are giving Other Allowances - can we take some part of DA is including this?,
Previously, before formulating this salary structure, they have given the salary structure as
Basic
DA
Conveyance
Leave travelling allowance
Medical reimperment, if bills are not given a standard of 8.33 % of basic given
House rent allowance
Hill station allowance
Could you please clarify.
Also please inform me, Government has any norms for fixing DA with respect to basic salary??
From India, Coimbatore
In that above salary structure, company has not mention the DA details, may be they purposefully omitted the words DA. But they are giving Other Allowances - can we take some part of DA is including this?,
Previously, before formulating this salary structure, they have given the salary structure as
Basic
DA
Conveyance
Leave travelling allowance
Medical reimperment, if bills are not given a standard of 8.33 % of basic given
House rent allowance
Hill station allowance
Could you please clarify.
Also please inform me, Government has any norms for fixing DA with respect to basic salary??
From India, Coimbatore
In terms of Payment of Gratuity Act, 1972, in my view, an employee must complete 5 years of service. As regards the rounding of period nearest to year, will be counted for computation of Gratuity after the eligibility period of 5 years and cannot be prior to it under any circumstances. The Hon\'ble Madras High Court has abundantly clarified this point. The question of 240 continuous service has no reckoning in 1st 5 years\' of eligibility.
From India, Mumbai
From India, Mumbai
Dear My Senior Sir,
My self Sanjay D, I am joined the organization on 13th June 2006,and left the organization on 11 June 2013. at the time on left the service my basic salary was 10300. And i am receipt a cheque as final payment on dec 2013 its 6 month late can i claim for interest for late payment.
Will you please help me for calculation of gratuity payment for the above period.
My total working days was 285days average in every year.(13.06.2006 to 11.06.2014)
From India, Indore
My self Sanjay D, I am joined the organization on 13th June 2006,and left the organization on 11 June 2013. at the time on left the service my basic salary was 10300. And i am receipt a cheque as final payment on dec 2013 its 6 month late can i claim for interest for late payment.
Will you please help me for calculation of gratuity payment for the above period.
My total working days was 285days average in every year.(13.06.2006 to 11.06.2014)
From India, Indore
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