Hi All,
I am Sonali.
I just gone through many sites to search for the exact formula for calculation of Gratuity, but still confused some are giving it like
[(Basic+da)/26]*15*no. of Yrs worked
some are giving it like
{[(Basic+da)*15]/26} * no. of Yrs worked
which one is correct n i also want to know the logic for this formula as well the basis +da is yearly or Monthly.
From India, Mumbai
I am Sonali.
I just gone through many sites to search for the exact formula for calculation of Gratuity, but still confused some are giving it like
[(Basic+da)/26]*15*no. of Yrs worked
some are giving it like
{[(Basic+da)*15]/26} * no. of Yrs worked
which one is correct n i also want to know the logic for this formula as well the basis +da is yearly or Monthly.
From India, Mumbai
hi i think second one is correct and if you have any doubt refer to labour act Regards Dhruvin
From India, Ahmadabad
22From India, Ahmadabad
Hello Sonali
First formula is correct.
Gratuity is calculated / paid for 15 days for every year of service completed.
So, first you need to divide the salary (basic & da) with total days of the month which gives you rate/day. then multiply it with 15 and no. of years completed.
Hope it is clear to you
regards
srinath
From Germany, Bühl
First formula is correct.
Gratuity is calculated / paid for 15 days for every year of service completed.
So, first you need to divide the salary (basic & da) with total days of the month which gives you rate/day. then multiply it with 15 and no. of years completed.
Hope it is clear to you
regards
srinath
From Germany, Bühl
hi sonali,
the formula is last drawn salary (basic+da) / 26 * 15 *year of service.
for any encashment e.g bonus calculation, leave encashment, deduction of epf, gratuity payment etc the component of basic salary +dearness allowance is consider rather than gross salary, 26 are the working days instead of 30 or 31 days, 15 is the figure for 15 days salary of each year and if year of service is 5 year or more than eligiblity for payment of the same will be possible. i think most of your doubt will be cleared now.
thanks & regards,
from,
sumit kumar saxena,
+91-9899669071, 0120-4131277
From India, Ghaziabad
the formula is last drawn salary (basic+da) / 26 * 15 *year of service.
for any encashment e.g bonus calculation, leave encashment, deduction of epf, gratuity payment etc the component of basic salary +dearness allowance is consider rather than gross salary, 26 are the working days instead of 30 or 31 days, 15 is the figure for 15 days salary of each year and if year of service is 5 year or more than eligiblity for payment of the same will be possible. i think most of your doubt will be cleared now.
thanks & regards,
from,
sumit kumar saxena,
+91-9899669071, 0120-4131277
From India, Ghaziabad
Dear sonali interpretation of sumitkumar saxena is perfect and as per the provisions of the payment of gratuity act, plz. Follow the same, kiran kale, kolhapur.
From India, Kolhapur
From India, Kolhapur
Dear
Basic & DA have to be taken as salary for gratuity calculation, if you take the gross salary it is more than the statutorily prescribed rate which will set as precedent.
the salary ie basic + da has to be divided by 26 to arrive one day salary which has to be multiplied by 15 then by no of years of service rendered. 5 yrs 6 months have to be taken as 6 years.
if any further clarification required, please do mail me.
C Manimaran
From India, Tiruchchirappalli
Basic & DA have to be taken as salary for gratuity calculation, if you take the gross salary it is more than the statutorily prescribed rate which will set as precedent.
the salary ie basic + da has to be divided by 26 to arrive one day salary which has to be multiplied by 15 then by no of years of service rendered. 5 yrs 6 months have to be taken as 6 years.
if any further clarification required, please do mail me.
C Manimaran
From India, Tiruchchirappalli
Dear Sonali,
I was also a same doubt in my mind few days back and also like u I went thru many sites and yes got confused....but after a discussion with a senior and yes experienced (more than 20yrs) HR professional he said that following formula is correct and also simple to calculate;
-[(Basic+da)/26]*15*no. of Yrs worked
I used it on trail basis and it is really gud and simple....now I am using it on regular basis......It is useful..
Regards,
Prashant
From India, Aurangabad
I was also a same doubt in my mind few days back and also like u I went thru many sites and yes got confused....but after a discussion with a senior and yes experienced (more than 20yrs) HR professional he said that following formula is correct and also simple to calculate;
-[(Basic+da)/26]*15*no. of Yrs worked
I used it on trail basis and it is really gud and simple....now I am using it on regular basis......It is useful..
Regards,
Prashant
From India, Aurangabad
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Gratuity calculation.doc
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