Dear All, I’m groing HR professional, kindly help haow Gratuity has calculated and Formula. Thanks and Regards Suresh
From India, Bangalore
From India, Bangalore
HI Suresh
Gratuity is applicable to those emoloyee who have completec continues 5 or more year services. They should worked 240 days in every year. Gratuity is payable 15 days per every working years. is any employee worked more then 6 month then count it as full year and if less then 6 month then avoid it in calculation
Gratuity = Basic Salary / 26 * years of service * 15 days
i.e. if Mr X was working since last 8 years and 7 month and he left the service and his last basic was 6000/- per month then
Gratuity amount = 6000/26*9*15
= 31154
From India, Pune
2Gratuity is applicable to those emoloyee who have completec continues 5 or more year services. They should worked 240 days in every year. Gratuity is payable 15 days per every working years. is any employee worked more then 6 month then count it as full year and if less then 6 month then avoid it in calculation
Gratuity = Basic Salary / 26 * years of service * 15 days
i.e. if Mr X was working since last 8 years and 7 month and he left the service and his last basic was 6000/- per month then
Gratuity amount = 6000/26*9*15
= 31154
From India, Pune
Dear, Mayur Topiwala
Please sugge. me how to calculate gratuity on monthly basis
actuly i m working with a contractor, P.E wants gratuity amount paid with salary on monthly basis
Regards
mukesh sharma
From India, Delhi
Please sugge. me how to calculate gratuity on monthly basis
actuly i m working with a contractor, P.E wants gratuity amount paid with salary on monthly basis
Regards
mukesh sharma
From India, Delhi
Friend,
Gratuity is payable only after separation from employment after putting continous service of mire than 5 years. The rates of last drawn Basis + Dearness Allowance is to considered for calculation of Gratuity. While calculating NOTIONAL burden of Gratuity, Rates of salaries (Basis + Dearness Allowance only ) of 'Eligible' employees is to be considered and approximatey 4.80% of last drawn salary is the burden Gratuity considered on monthly basis. LIC of India has policy covering the liability of Gratuity and every employer is required to get that ppolicy compusory. The premium of this policy is based on 'Actuary valuation' of Notional burden of Gratuity.
Hope, This suffice the purpose of your query.
V. K. Bhide
From India, Pune
Gratuity is payable only after separation from employment after putting continous service of mire than 5 years. The rates of last drawn Basis + Dearness Allowance is to considered for calculation of Gratuity. While calculating NOTIONAL burden of Gratuity, Rates of salaries (Basis + Dearness Allowance only ) of 'Eligible' employees is to be considered and approximatey 4.80% of last drawn salary is the burden Gratuity considered on monthly basis. LIC of India has policy covering the liability of Gratuity and every employer is required to get that ppolicy compusory. The premium of this policy is based on 'Actuary valuation' of Notional burden of Gratuity.
Hope, This suffice the purpose of your query.
V. K. Bhide
From India, Pune
Hi,
I understand that some companies are insiisting on monthly payment of Gratuity (instead of payment during separation). This has a noble idea of paying the employee rather than the contractor, who may get the benefit as 5 years of service is now-a-days is uncommon.
Is anyone in this forum doing it ? Can you send the details of such monthly payments ? How it is arrived at and how the difference (if any) after 5 years will be reconciled and adjusted, when actual separation takes place ? Is it legally right to pay monthly as the word "Gratuity" looses its meaning and the employee in most cases will be a loser (if the change in value of money, due to early payments, is not considered) as the salary levels are bound to increase over the years and legally eligible Grauity payment considers the last drawn salaries ?
Regards
Sathish
From India
I understand that some companies are insiisting on monthly payment of Gratuity (instead of payment during separation). This has a noble idea of paying the employee rather than the contractor, who may get the benefit as 5 years of service is now-a-days is uncommon.
Is anyone in this forum doing it ? Can you send the details of such monthly payments ? How it is arrived at and how the difference (if any) after 5 years will be reconciled and adjusted, when actual separation takes place ? Is it legally right to pay monthly as the word "Gratuity" looses its meaning and the employee in most cases will be a loser (if the change in value of money, due to early payments, is not considered) as the salary levels are bound to increase over the years and legally eligible Grauity payment considers the last drawn salaries ?
Regards
Sathish
From India
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