Dear Sir, Kindly tell me that in Gratuity Calculation how many days are considered for 1 service year for daily rated (wage) worker. Regards. Kausik
From India, Siliguri
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2From India, Siliguri
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Gratuity is paid for good service and gratitude. It is a benefit provided to any employee completing 5 years of continuous service, which cannot be adjusted against any dues.
If an employee has completed 5 years of continuous service in an establishment, they are eligible for gratuity. The entitlement is 15 days' salary for each completed year of service or part thereof. The salary is calculated as Basic Salary + D.A.
According to the Payment of Gratuity Act, 1972, the amount of gratuity should be calculated using the following formula: Salary x Number of completed years of service x 15/26.
This is the concept of gratuity.
Thank you.
From India, Gurgaon
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If an employee has completed 5 years of continuous service in an establishment, they are eligible for gratuity. The entitlement is 15 days' salary for each completed year of service or part thereof. The salary is calculated as Basic Salary + D.A.
According to the Payment of Gratuity Act, 1972, the amount of gratuity should be calculated using the following formula: Salary x Number of completed years of service x 15/26.
This is the concept of gratuity.
Thank you.
From India, Gurgaon
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My question is for dailyrated workers how many workingdays in a particular year consider as year of service ?
From India, Siliguri
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From India, Siliguri
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If a daily-rated employee has completed 5 years of continuous service in the facility or in the case of death, then he is eligible for Gratuity irrespective of whether he is monthly paid or daily paid.
Gratuity Calculation for Daily-Paid Employees
For daily-paid employees, gratuity can be calculated as follows: Gratuity = (Daily rate of wages x 15 days) x Number of years worked in the entity.
Hourly Basic Rate of Pay for Daily-Rated Employees
For a daily-rated employee, his hourly basic rate of pay is computed as follows:
Daily Pay at the Basic Rate
-------------------------------------------
Working Hours Per Day
Hope this will solve your query.
From India, Gurgaon
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Gratuity Calculation for Daily-Paid Employees
For daily-paid employees, gratuity can be calculated as follows: Gratuity = (Daily rate of wages x 15 days) x Number of years worked in the entity.
Hourly Basic Rate of Pay for Daily-Rated Employees
For a daily-rated employee, his hourly basic rate of pay is computed as follows:
Daily Pay at the Basic Rate
-------------------------------------------
Working Hours Per Day
Hope this will solve your query.
From India, Gurgaon
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For a daily rated employee, 240 days of working days will constitute one year of service. This 240 days is inclusive of any holiday payment given to the employee. Regards, Madhu.T.K
From India, Kannur
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From India, Kannur
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This 240 days is inclusive of all admissible leaves taken by the employee. That means all PAID LEAVES and ESI leaves should be included in the days worked. If the actual physical working days are 220 but there were some 5 days of ESI leave due to accidents and 15 days of other sick and casual leave, then he is still considered to have continuous service for the purpose of gratuity.
Madhu.T.K
From India, Kannur
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Madhu.T.K
From India, Kannur
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Gratuity- casual daily rated period to be considered.PDF
Gratuity calculation.doc