Hi, What is the meaning of Gratuity??? Please explain in detail since I do not have any idea for this. Regards, Shweta
From India, New Delhi
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4From India, New Delhi
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Hi Shwetha,
It is the amount that will be paid for your continuous service of 5 years in a single company for a minimum of 240 days every year. This will be mainly calculated based on your basic salary from your last month. I have attached a reference file for you that contains the details on how to calculate Gratuity. Please refer to sheet 2 for the specifics. I hope this information will be useful to you. Feel free to reach out to me if you need any clarifications regarding the attached file.
Regards,
Amith R.
From India, Bangalore
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It is the amount that will be paid for your continuous service of 5 years in a single company for a minimum of 240 days every year. This will be mainly calculated based on your basic salary from your last month. I have attached a reference file for you that contains the details on how to calculate Gratuity. Please refer to sheet 2 for the specifics. I hope this information will be useful to you. Feel free to reach out to me if you need any clarifications regarding the attached file.
Regards,
Amith R.
From India, Bangalore
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Hi Amith R Murthy Rest all is OK but where does that 15 and 26 comes from? PLease elaborate. I hope I am not expecting too much!!! Regards, Shweta
From India, New Delhi
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From India, New Delhi
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Hi Shwetha,
Not at all. Let me clear your doubt. 15 is considered as the half-month salary, and 26 is considered to be the number of working days in a month, excluding 4 Sundays which you will have in most months. Hope it is clear for you now.
Regards,
Amith R.
From India, Bangalore
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Not at all. Let me clear your doubt. 15 is considered as the half-month salary, and 26 is considered to be the number of working days in a month, excluding 4 Sundays which you will have in most months. Hope it is clear for you now.
Regards,
Amith R.
From India, Bangalore
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It is a retirement benefit to be paid to the employees, usually at the time of retirement. One become eligible for gratuity after completion of 5 years of service.
From India, Mumbai
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From India, Mumbai
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Thanks Amith, Plz update that is it applicabe only for government employees or private employees too? Also, Under what circumstances, it can be cancelled? Regards, Shweta
From India, New Delhi
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From India, New Delhi
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Welcome Shwetha,
It is applicable for private employees as well. According to me, it can be canceled if an employee has not worked a minimum of 240 days in a year for any of the five years (other members, correct me if I am wrong). Apart from this particular case, even I don't have any idea.
One more thing to add is if an employee quits the company just 2 or 3 months before completion of five years, then also, he can still get Gratuity if he has worked for 240 days in the fifth year. Hope this is clear for you now.
Regards,
Amith R.
From India, Bangalore
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It is applicable for private employees as well. According to me, it can be canceled if an employee has not worked a minimum of 240 days in a year for any of the five years (other members, correct me if I am wrong). Apart from this particular case, even I don't have any idea.
One more thing to add is if an employee quits the company just 2 or 3 months before completion of five years, then also, he can still get Gratuity if he has worked for 240 days in the fifth year. Hope this is clear for you now.
Regards,
Amith R.
From India, Bangalore
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Hi Swetha!
At the top of the Home page of this site, you will find a search bar. Just type the word "gratuity" there and go for it. You will find many related questions and answers on the subject which are sure to enlighten you on several dimensions.
Ashok
From India, Bhubaneswar
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At the top of the Home page of this site, you will find a search bar. Just type the word "gratuity" there and go for it. You will find many related questions and answers on the subject which are sure to enlighten you on several dimensions.
Ashok
From India, Bhubaneswar
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Hello all,
Adding to our friend's point, I would like to share the following:
Gratuity: Gratuity is the amount payable by the employer to the employee for his long and meritorious service in any company. Gratuity is payable under the Payment of Wages Act. It is calculated as follows:
Basic wages: Basic + DA + VDA
Last drawn salary: One month's salary, suppose if he worked only 6 days during the last month. Then we have to take the previous month's salary. Suppose if he worked less than 15 days, then we have to take the last six months' average salary.
Number of years of service: Total number of years of service from the present company. If he worked for two or more companies and the total number of years of service is 20, then we have to take the present company's total number of years of service only, say 10 years.
Gratuity: Last drawn salary x Number of years of service x 15/26.
One condition is he should have a minimum continuous year of service of 5 years. Minimum 240 days per year.
Suppose a person has worked for 10 years. But he has not worked 240 days for two years, then we need not pay gratuity for two years. But we have to prove that he has not worked for 240 days by giving a show cause notice and other relevant documents. Normally, the employer will not deduct gratuity for a particular year if he has not worked less than 240 days.
If a person has worked for 4 years and 10 months, then we have to see whether he has worked 240 days for the last year or not. Since 240 days in a year are defined in the Factories Act 1948.
I hope I made it clear all the doubts. Comments if any.
With regards,
K.V. Selvaraj.
From India, Coimbatore
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Adding to our friend's point, I would like to share the following:
Gratuity: Gratuity is the amount payable by the employer to the employee for his long and meritorious service in any company. Gratuity is payable under the Payment of Wages Act. It is calculated as follows:
Basic wages: Basic + DA + VDA
Last drawn salary: One month's salary, suppose if he worked only 6 days during the last month. Then we have to take the previous month's salary. Suppose if he worked less than 15 days, then we have to take the last six months' average salary.
Number of years of service: Total number of years of service from the present company. If he worked for two or more companies and the total number of years of service is 20, then we have to take the present company's total number of years of service only, say 10 years.
Gratuity: Last drawn salary x Number of years of service x 15/26.
One condition is he should have a minimum continuous year of service of 5 years. Minimum 240 days per year.
Suppose a person has worked for 10 years. But he has not worked 240 days for two years, then we need not pay gratuity for two years. But we have to prove that he has not worked for 240 days by giving a show cause notice and other relevant documents. Normally, the employer will not deduct gratuity for a particular year if he has not worked less than 240 days.
If a person has worked for 4 years and 10 months, then we have to see whether he has worked 240 days for the last year or not. Since 240 days in a year are defined in the Factories Act 1948.
I hope I made it clear all the doubts. Comments if any.
With regards,
K.V. Selvaraj.
From India, Coimbatore
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