Greetings Learned members:
1. 5 years and above – one month basic salary for every year of service.
2. 10 years and above – six weeks basic salary for every year of service
Please what do the above statement mean?
Regards
From Nigeria, Lagos
11. 5 years and above – one month basic salary for every year of service.
2. 10 years and above – six weeks basic salary for every year of service
Please what do the above statement mean?
Regards
From Nigeria, Lagos
That means company is going to pay additional gratuity if an employee works from 5 to 10 years & for more than 10 years. This is followed by company as it wants its employees to work for 5 or more years to be entitled to nearly double gratuity. For 10 or more years the gratuity offed is 3 times.
From India, Mumbai
From India, Mumbai
@Shrikant, thank you for your contribution. Where I find difficult to understand is "One month basic salary for every year of service" and "Six weeks basic salary for every year of service"
In the case of the latter, does it means the beneficiary shall be paid 'only' six weeks salary per year for 5 years? Take for instance, the beneficiary earns $500 as basic salary, that's is $750 x 5years = $3750 gratuity?
From Nigeria, Lagos
In the case of the latter, does it means the beneficiary shall be paid 'only' six weeks salary per year for 5 years? Take for instance, the beneficiary earns $500 as basic salary, that's is $750 x 5years = $3750 gratuity?
From Nigeria, Lagos
it would be 750( 6 weeks basic)*15/26(the days of the month for gratuity)*11( no of completed year) = 4760
From India, Mumbai
From India, Mumbai
Formula of Gratuity is as stated by Ashutosh Thakre. Regards Venkata Vamsi Krishna
From India, Hyderabad
From India, Hyderabad
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Payment of Gratuity Act, 1972 & The Rules.ppt
THE PAYMENT OF GRATUITY ACT 1972.doc