hi all, I wanna calculate my gratuity , here is my salary annexure for one month Basic:- 4000 hra :- 2000 sepical allo :- 4886 pls help me how we calculate gratuity for my 5 years working period!!! I will waiting for u r reply
From India, Pune
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1From India, Pune
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Hi... Gratuity = [(Basic + DA) X 15 X No. of years of Service]/ (No. of working days in a month) So, in your case Gratuity = (4000 X 15X 5 ) / 26 = Rs.11538.46 For gratuity calculation HRA and other allowances is not considered. Truly Yours, Kumar.H.P
From Hong Kong
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From Hong Kong
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hi May i know what is this 15 in the formula. And how can the working days be 26 per month? can’t 26 be varying? if no then wat about the public holidays? Pls clarify...
From India, Hyderabad
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From India, Hyderabad
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Dear Navya Gratuity is paid 15 days per month ''' According to gratuity act a month means and includes 26 days( excluding 4 weekly off variations not observed) Better views invited Vasanth
From India, Bangalore
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From India, Bangalore
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As per the gratuity act an employee is eligible for gratuity only if he has completed a contineous period of 5 or more years. Gratuity is payable for 15 days per year for a period the empoyee has worked in the organization. Also note that after the completion of 5 years every period in excess of 6 months is treated as one completed year. For example if an employee has worked for 6 years and 8 months than he will be eligible for a gratuity of 7 years. Gratuity is calculated as (Basic + DA)x 15 x no of years/26. Thanks Aditya Gupta
From India, Delhi
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From India, Delhi
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Dear all, I am working in Tamil nadu electricity board as Junior engineer.My salary structure is B.Pay = 6825 D.Pay= 3413 DA=6552 HRA=1100 CCA=300 Med.All=50. My total service is 11 years. 1)May i include D.pay for calculating Gratuity? 2)I calculated my gratuity as =(6825+3413+6552)*15*11/26 = 106552 Is this correct.please share your views regards
From India, Madras
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From India, Madras
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Dear If the payment of gratuity is to be received by you as per the Payment of Gratuity Act,1972 & not in accordance with any other Rules then you are correct in saying that D.Pay will be included for calculation purposes & you have also rightly calculated the amount of gratuity as per the provisions of this Act. Opinion Submitted as requested. Regards, R.N.Khola Skylark Associates, Gurgaon(Haryana) (Labour Law & Legal Consultants)
From India, Delhi
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From India, Delhi
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(Basic + DA) x 15 x Number of months of services spent in that company (i.e., 3 years = 36 months) will be calculated using 36 months/26 working days of the month.
Gratuity = (Basic + DA) x 15 x 36 months (36 months = 3 years of service in the company)/26
Why do we equate 36 months to 3 years? If we analyze the ethics of salary, we are paid for a job done, whether per day, week, month, or year.
In the context of gratuity, if you are paid, for example, 1000 per month, and annually, you will receive 1000 x 12 months of the year = 12000.
We do not work once a year and then again the next year. What about the days, months of struggles, and sacrifices made going to your workplace? Don't you see that all these are overlooked in the incorrect calculation of gratuity using years of service instead of months spent in the company?
The formula for gratuity as (Basic + DA) x 15 x years of service / 26 is incorrect.
Let's discuss the correct formula to use:
(Basic + DA) x 15 x Months of services spent in the company / 26. This is the correct one.
Am I wrong? Please share your point of view as well.
My email: meetbayonika@gmail.com
Mr. N. B. PATRICE
From India, Nasik
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Gratuity = (Basic + DA) x 15 x 36 months (36 months = 3 years of service in the company)/26
Why do we equate 36 months to 3 years? If we analyze the ethics of salary, we are paid for a job done, whether per day, week, month, or year.
In the context of gratuity, if you are paid, for example, 1000 per month, and annually, you will receive 1000 x 12 months of the year = 12000.
We do not work once a year and then again the next year. What about the days, months of struggles, and sacrifices made going to your workplace? Don't you see that all these are overlooked in the incorrect calculation of gratuity using years of service instead of months spent in the company?
The formula for gratuity as (Basic + DA) x 15 x years of service / 26 is incorrect.
Let's discuss the correct formula to use:
(Basic + DA) x 15 x Months of services spent in the company / 26. This is the correct one.
Am I wrong? Please share your point of view as well.
My email: meetbayonika@gmail.com
Mr. N. B. PATRICE
From India, Nasik
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