Dear Sir,
Could anyone please suggest to me how to calculate gratuity? I would also like to know how the basic + DA will be considered when calculating gratuity. For example, if a person has been working in an organization for the last seven years, and their basic salary keeps changing over time, which basics will be considered at the time of leaving the job?
From India, Delhi
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1Could anyone please suggest to me how to calculate gratuity? I would also like to know how the basic + DA will be considered when calculating gratuity. For example, if a person has been working in an organization for the last seven years, and their basic salary keeps changing over time, which basics will be considered at the time of leaving the job?
From India, Delhi
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Dear Sir, Thank you for your reply but what (Basic+DA) shall we consider, the one which he is getting at the time of leaving the organizatio,shall we calculate on that? Kindly reply.
From India, Delhi
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From India, Delhi
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Not only for Gratuity for any calculation like EL encashment, OT etc you have to calculate the Basic +DA+VDA as on the date pl Regards - kamesh
From India, Hyderabad
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From India, Hyderabad
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if you don’t have VDA component then only Basic + DA and if you have only Basic then Basic only - kamesh
From India, Hyderabad
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From India, Hyderabad
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Dear Shri Mukherjee,
Gratuity is always to be computed based on the last basic pay plus the dearness allowance admissible on it. To be specific, if an employee happens to pass away on a certain date on which he receives his annual increment and a rise in his dearness allowance, then the gratuity is due at the last basic pay with the increment earned, along with the increased rate of dearness allowance on that basic.
Thanks & regards,
From India, Pune
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Gratuity is always to be computed based on the last basic pay plus the dearness allowance admissible on it. To be specific, if an employee happens to pass away on a certain date on which he receives his annual increment and a rise in his dearness allowance, then the gratuity is due at the last basic pay with the increment earned, along with the increased rate of dearness allowance on that basic.
Thanks & regards,
From India, Pune
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Dear Mr. Mukherjee,
Gratuity is to be calculated on Basic and DA/VDA last drawn by the employee, i.e. on the salary at the time of leaving. The formula is Last drawn Basic + DA/VDA X No. of years of service X 15/26.
Regards,
D. Phani Kumar
DGM- HR
VASAVADATTA CEMENT.
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Gratuity is to be calculated on Basic and DA/VDA last drawn by the employee, i.e. on the salary at the time of leaving. The formula is Last drawn Basic + DA/VDA X No. of years of service X 15/26.
Regards,
D. Phani Kumar
DGM- HR
VASAVADATTA CEMENT.
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What Mr. Phani Kumar is suggesting is correct. However, when calculating the Gratuity, if the number of years of service exceeds 6 months by even one day, you have to calculate the Gratuity for the next year. For example, if an employee has worked for 6 years, 6 months, and 2 days, they are eligible for 7 years of Gratuity. If the employee works for 6 years, 6 months, or less, they will only receive 6 years of Gratuity.
Regards,
Srinivas
Manager - HR
From India, Hyderabad
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Regards,
Srinivas
Manager - HR
From India, Hyderabad
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Please, let me correct if I am wrong, Maxmimum Gratuity payable should not be more than one years salary.
From India, Nandurbar
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From India, Nandurbar
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Dear Sebastinss, Can you please help me know whether Gratuity eligilble criteria for no. of years is still 4years 240 days or is there any change? Regards, Neelam
From India, Pune
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From India, Pune
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Dear All,
Please let me know, during gratuity calculation, why the formula considers 26 days (Basic+DA) instead of 30 days. If you are excluding 4 days of off, resulting in 26 days, then why is the calculation based on 15 days and not 13 days (considering half a month with 26 days as a full month).
What is the current maximum limit from an IT point of view and in general?
Regards,
Sanjeev
From India, Pune
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Please let me know, during gratuity calculation, why the formula considers 26 days (Basic+DA) instead of 30 days. If you are excluding 4 days of off, resulting in 26 days, then why is the calculation based on 15 days and not 13 days (considering half a month with 26 days as a full month).
What is the current maximum limit from an IT point of view and in general?
Regards,
Sanjeev
From India, Pune
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Maximum ceiling for payment of gratuity under the Payment of Gratuity Act, 1972 with effect from 24/05/2010, is Rs.10 lakh. Prior to 24/05/2010; it was Rs.3.50 lakh.
From India, Pune
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From India, Pune
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Dear all,
The maximum limit for the payment of gratuity is Rs. 3,50,000/-, and instead of 30 days, 26 days were considered because the calculation is done based on working days, which is 26, not 30 or 31 days. The eligibility criteria should be the completion of 5 years. Continuous 4 years + 240 days will be considered as 5 years.
Thanks & Regards,
Sumit Kumar Saxena
9899669071
From India, Ghaziabad
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The maximum limit for the payment of gratuity is Rs. 3,50,000/-, and instead of 30 days, 26 days were considered because the calculation is done based on working days, which is 26, not 30 or 31 days. The eligibility criteria should be the completion of 5 years. Continuous 4 years + 240 days will be considered as 5 years.
Thanks & Regards,
Sumit Kumar Saxena
9899669071
From India, Ghaziabad
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Hi No, Maxmimum Gratuity payable limit has gone up to 10 Lac. Earlier ceiling was of 3.5 lac. Thnx
From India, Delhi
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From India, Delhi
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Dear Shri Sumit Kumar Ji, Please confirm maximum ceiling of gratuity. It has been increased to Rs.10 lakh from 24/05/2010 by an extra ordinary gazette notification.
From India, Pune
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From India, Pune
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[QUOTE=mukherjee.jit;1679030]Dear Sir,
Can anyone please suggest how to calculate gratuity? Also, I would like to know how the basic+DA should be considered when calculating gratuity. For example, if a person has been working in an organization for the last seven years and their basic salary keeps changing over time, which basics will be considered at the time of leaving the job?
Hi,
The formula for gratuity calculation is:
Last basic drawn / 26 * 15 * No. of completed years of service.
Gratuity is provided after completing five years of continuous service.
Regards,
Ganesh
Manager-H.R
From India, Jamshedpur
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Can anyone please suggest how to calculate gratuity? Also, I would like to know how the basic+DA should be considered when calculating gratuity. For example, if a person has been working in an organization for the last seven years and their basic salary keeps changing over time, which basics will be considered at the time of leaving the job?
Hi,
The formula for gratuity calculation is:
Last basic drawn / 26 * 15 * No. of completed years of service.
Gratuity is provided after completing five years of continuous service.
Regards,
Ganesh
Manager-H.R
From India, Jamshedpur
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Dear Mr. Mukherjee,
Gratuity is to be calculated on Basic and DA last drawn by the employee, i.e. on the salary at the time of leaving. The formula is Last drawn Basic + DA X No. of years of service X 15/26.
Ex:
- Date of joining: 7.06.2005
- Date Of Leaving: 19.09.2011
- Service: 6 Years 3 Months 0 Days
- Basic Wages + DA: 15850 per month
- Total Lop: NIL
GRATUITY WORKINGS: 15850 X 6 yrs X 15/26 = Rs. 54865/-
Regards,
S.KARTHIK - HR
From India, Madras
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Gratuity is to be calculated on Basic and DA last drawn by the employee, i.e. on the salary at the time of leaving. The formula is Last drawn Basic + DA X No. of years of service X 15/26.
Ex:
- Date of joining: 7.06.2005
- Date Of Leaving: 19.09.2011
- Service: 6 Years 3 Months 0 Days
- Basic Wages + DA: 15850 per month
- Total Lop: NIL
GRATUITY WORKINGS: 15850 X 6 yrs X 15/26 = Rs. 54865/-
Regards,
S.KARTHIK - HR
From India, Madras
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As per the revised law, the maximum gratuity payable is Rs. 10 lakh (more can be paid if not mentioned in the contract but will be taxable). It should be calculated on Basic+DA of every year individually (as per the Gratuity Act), but companies usually take the Basic+DA of the present year.
From India, Ghaziabad
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From India, Ghaziabad
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Re-Gratuity
The Basic + DA taken as last drawn on the date of relieving. Calculation will be as under:- Salary last drawn (Basic + DA) * 15/26 * number of years served. The amount of Gratuity will be calculated above or Rs 10,00,000/- whichever is less.
Thanks, G.S. Saini Cost Accountant G.M. Finance COATEC INDIA
From India, Chandigarh
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The Basic + DA taken as last drawn on the date of relieving. Calculation will be as under:- Salary last drawn (Basic + DA) * 15/26 * number of years served. The amount of Gratuity will be calculated above or Rs 10,00,000/- whichever is less.
Thanks, G.S. Saini Cost Accountant G.M. Finance COATEC INDIA
From India, Chandigarh
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Dear Members, Pls find herewith attached file for Calculation of Gratuity & Pls confirm that how a person can eligible to avail 6th Years Amount.
From India, Ludhiana
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From India, Ludhiana
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As per gratuity act 1972 gratuity is not more than3,5000rs and formula for calculation is last drawn salary X 15/26 X no.of service per years. Regards G.Rajkumar HR Asst. yuvaraj power projects ltd,
From India, Bangalore
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From India, Bangalore
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dear i think gratuity is calculation is based on basis*15*26*no of years of service.. is it right Rgds rajesh
From India, Kakinada
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From India, Kakinada
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Dear all,
As per the request, please find the points below as per the Gratuity Act of 1972 for your reference.
Gratuity Formula: Basic + DA. This means you only need to mention the current month's Basic + DA, multiplied by 15, then multiplied by the number of years worked, divided by 26.
The eligibility for Gratuity is 5 years of continuous service. In case of death, only the actual years worked need to be considered.
If an employee has worked for more than five years, you must calculate their total working days. If an employee has worked less than 240 days in the current financial year, adjustments need to be made for their leave, etc., based on the act's provisions. If an employee has worked more than five years and more than six months in the current year, their total eligible years would be considered as 6 years.
The maximum payable Gratuity amount is Rs. 1,000,000 (Ten Lakh).
I hope this clarifies any doubts.
Thank you,
Yogeesh
From India, Bangalore
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As per the request, please find the points below as per the Gratuity Act of 1972 for your reference.
Gratuity Formula: Basic + DA. This means you only need to mention the current month's Basic + DA, multiplied by 15, then multiplied by the number of years worked, divided by 26.
The eligibility for Gratuity is 5 years of continuous service. In case of death, only the actual years worked need to be considered.
If an employee has worked for more than five years, you must calculate their total working days. If an employee has worked less than 240 days in the current financial year, adjustments need to be made for their leave, etc., based on the act's provisions. If an employee has worked more than five years and more than six months in the current year, their total eligible years would be considered as 6 years.
The maximum payable Gratuity amount is Rs. 1,000,000 (Ten Lakh).
I hope this clarifies any doubts.
Thank you,
Yogeesh
From India, Bangalore
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Salary whatever its may be but the gratuity amount is lesser than are equal .3.60 laksh. Is there any correction inform me............
From India, Madras
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From India, Madras
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My wife was a teacher in a private school. She retired on 1st June 2005. However, she has not been paid gratuity despite several reminders. We have approached the Labour Commissioner, and the matter has been pending there for one year. Is there any High Court judgment in this regard for private teachers after the amendment of the Gratuity Act in 2009?
From India, Valsad
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From India, Valsad
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but is it necessary that the employment period should be more than 5 years or equal to 5 years, if employee leaving the job before years, then will he be eligible to get the gratuity
From India
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From India
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Current salary divided by 26, then multiplied by 15, and again multiplied by the number of years worked.
Current Salary = Basic + DA
26 = Working days in a month except Sunday.
15 = Gratuity payable for the number of days in a year.
Number of Years Worked: After working for 4 years, from the 5th year onward, if worked for more than six months, then you are eligible for the full year.
From India, Bangalore
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Current Salary = Basic + DA
26 = Working days in a month except Sunday.
15 = Gratuity payable for the number of days in a year.
Number of Years Worked: After working for 4 years, from the 5th year onward, if worked for more than six months, then you are eligible for the full year.
From India, Bangalore
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The Formula is Last salary drawn(Basic + DA+IR(Interim relief if any)X15X no. of yrs of service/ 26. yrs calculation shall be on the months served as plus six will be considered as one year.
From India, Patna
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From India, Patna
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Maximum ceiling of payment of gratuity is Rs. 10 Lacs. — -LOKANADHA BABU NARRA MANAGER H.R.
From India, Guntur
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From India, Guntur
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Gratuity is paid after completion of 5 years of continuous service. It is calculated based on the Last Drawn salary (Basic+DA)/26*15*No of years. If the number of months is in fraction above six months, round off to the next month, i.e., (6 years 6 months and 3 months or 2 months, then round off to 7 months). The maximum Gratuity allowed under Income Tax Exemption is 10 Lakhs in the entire service period. If your company is not registered under the gratuity act, then rounding off is not required. You can pay 6.6 years.
From India, Bangalore
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From India, Bangalore
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You can Calculate as DA+BASIC/26x15xyears of service. But in some cases company is giving 17 days Gratuity RBS
From India, Mumbai
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From India, Mumbai
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Dear All,
Can anyone help me in elaborating the Act/Rule of Gratuity? Suppose it is mentioned that "You will not be entitled to Gratuity" in any appointment letter, will it be considered? If the complete break-up of CTC is given in the Appointment Letter, can any company mention that Gratuity is included? I need a perfect justification on this matter.
Thank you.
From India, Surat
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Can anyone help me in elaborating the Act/Rule of Gratuity? Suppose it is mentioned that "You will not be entitled to Gratuity" in any appointment letter, will it be considered? If the complete break-up of CTC is given in the Appointment Letter, can any company mention that Gratuity is included? I need a perfect justification on this matter.
Thank you.
From India, Surat
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It cannot be mentioned that gratuity is a right of an employee. Hence, no company can state in the appointment letter that the employee is not entitled to gratuity.
Yes, gratuity can be included in the CTC. It will be 4.81% of the Basic and DA/VDA. Many companies are including gratuity in the CTC.
D. Phani Kumar
DGM-HR
Vasavadatta Cement
(A Unit of B.K. Birla Group of Companies)
Sedam, Gulbarga Dist.
Karnataka.
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Yes, gratuity can be included in the CTC. It will be 4.81% of the Basic and DA/VDA. Many companies are including gratuity in the CTC.
D. Phani Kumar
DGM-HR
Vasavadatta Cement
(A Unit of B.K. Birla Group of Companies)
Sedam, Gulbarga Dist.
Karnataka.
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