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Hi Pawar,
Here you go.
The calculation for the last drawn basic salary is as follows:
Last drawn basic salary x 15 / 26 x Number of years of service.
Here, '15' refers to the half-month salary, and '26' refers to the number of working days in the month, assuming 8 working hours per day.
Regards,
Bharath Bhushan
From India, Bangalore
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Here you go.
The calculation for the last drawn basic salary is as follows:
Last drawn basic salary x 15 / 26 x Number of years of service.
Here, '15' refers to the half-month salary, and '26' refers to the number of working days in the month, assuming 8 working hours per day.
Regards,
Bharath Bhushan
From India, Bangalore
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Dear Member,
Please provide the formula under which Act/Rules/service rules (Central or State).
With Regards,
R.N.Khola
QUOTE=pawarmohan;1104076]Wanted Formula of Gratuity Calculation[/QUOTE]
From India, Delhi
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Please provide the formula under which Act/Rules/service rules (Central or State).
With Regards,
R.N.Khola
QUOTE=pawarmohan;1104076]Wanted Formula of Gratuity Calculation[/QUOTE]
From India, Delhi
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Dear nb85,
Gratuity is an award for his/her long and meritorious services with the firm and is governed by the Payment of Gratuity Act 1972.
An employee is eligible for gratuity only if he/she has been in service with the company for five years continuously at least. Gratuity can be calculated as "Basic salary x 15/26 x years spent in service".
In the case of death or disablement while on duty, continuous service for 5 years is not necessary.
For any further queries, you can email me at khamparianeha@gmail.com.
Regards,
Neha
From India, Pune
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Gratuity is an award for his/her long and meritorious services with the firm and is governed by the Payment of Gratuity Act 1972.
An employee is eligible for gratuity only if he/she has been in service with the company for five years continuously at least. Gratuity can be calculated as "Basic salary x 15/26 x years spent in service".
In the case of death or disablement while on duty, continuous service for 5 years is not necessary.
For any further queries, you can email me at khamparianeha@gmail.com.
Regards,
Neha
From India, Pune
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Gratuity is paid 15 days for every completed year of service. First, one should have completed 5 years of continuous service. To arrive at 15 days of salary, (Basic + DA) / 26 = one day's salary. Multiply this by 15 to calculate 15 days of salary. This calculation should be done regardless of the number of days in a month, as ruled by the Hon'ble Supreme Court of India.
This amount is then multiplied by the number of years of service put in by the employee. If 6 months or more have been completed, it is considered as 1 year; less than 6 months is neglected. However, the primary condition is that one should have completed 5 years of service.
NAGARAJ
From India, Bangalore
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This amount is then multiplied by the number of years of service put in by the employee. If 6 months or more have been completed, it is considered as 1 year; less than 6 months is neglected. However, the primary condition is that one should have completed 5 years of service.
NAGARAJ
From India, Bangalore
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Respected Nagraj, Is there any compliace that worker must have to work 240 days every year to be eligible for gratuity? Thanks & Regards, Ravinder Vardhman
From India, Rohtak
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From India, Rohtak
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hi pawar, last drawn salary(basic+da) * year of service * 15 / 26 B’regards from sumit kumar saxena 9899669071, 0120-4131277
From India, Ghaziabad
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From India, Ghaziabad
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Hi Neha,
I know the formula; we are using it, but in my organization, there is a CTC concept. However, in my organization, they will pay us after 5 years of service; they are deducting it after a 6-month probation period. We are using this formula - basic salary/26*15 and dividing it by the months in which we have to collect it from the employee.
Can you please tell me if this is the right way? I don't think it's right.
Regards,
Neha
From India, Delhi
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I know the formula; we are using it, but in my organization, there is a CTC concept. However, in my organization, they will pay us after 5 years of service; they are deducting it after a 6-month probation period. We are using this formula - basic salary/26*15 and dividing it by the months in which we have to collect it from the employee.
Can you please tell me if this is the right way? I don't think it's right.
Regards,
Neha
From India, Delhi
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Gratuity calculation.doc
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