hi I would like to know about the calculation of gratuity. what is the formula for calculating the gratuity if an employee compleated less than one year with the organisation.
From United Kingdom, Aberdeen
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4From United Kingdom, Aberdeen
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Hi
For availing Gratutity, an employee should completed Min 5 years of continuous service in an organisation. For employees below 5 years of service, no employer is liable to provide Gratuity....
More over Gratuity means:an Exgratia amount ie, an amt given in a gratitude from the employer for any employee towards his good service rendered for the company..
Raj
From India, Madras
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For availing Gratutity, an employee should completed Min 5 years of continuous service in an organisation. For employees below 5 years of service, no employer is liable to provide Gratuity....
More over Gratuity means:an Exgratia amount ie, an amt given in a gratitude from the employer for any employee towards his good service rendered for the company..
Raj
From India, Madras
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Hi
For availing Gratuity, an employee should completed Min 5 years of continuous service in an organisation. For employees below 5 years of service, no employer is liable to provide Gratuity....
More over Gratuity means:an Exgratia amount ie, an amt given in a gratitude from the employer for any employee towards his good service rendered for the company..
Raj
From India, Madras
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For availing Gratuity, an employee should completed Min 5 years of continuous service in an organisation. For employees below 5 years of service, no employer is liable to provide Gratuity....
More over Gratuity means:an Exgratia amount ie, an amt given in a gratitude from the employer for any employee towards his good service rendered for the company..
Raj
From India, Madras
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(Fact Check Failed/Partial)-The information provided is incorrect.
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The formula for the calculation of the gratuity amount is (((Basic+D.A.)*15)/26)*No. of years of service. Kindly revert if the formula is not clear!! Cheers! Shringarika.
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(Fact Check Failed/Partial)-The formula provided for calculating gratuity is incorrect. For employees serving less than one year, the gratuity amount is not applicable. Thank you for your input!
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Payment Of Gratuity Act, 1972
Applicability
Eligibility
Benefits
Calculation of Gratuity
Penal Provisions
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Applicability
1. Every factory (as defined in Factories Act), mine, oilfield, plantation, port and railway.
2. Every shop or establishment to which Shops & Establishment Act of a State applies in which 10 or more persons are employed at any time during the year end.
3. Any establishment employing 10 or more persons as may be notified by the Central Government.
4. Once Act applies, it continues to apply even if employment strength falls below 10.
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Eligibility
1. Any person employed on wages/salary.
2. At the time of retirement or resignation or on superannuation, an employee should have rendered continuous service of not less than five years,
3. In case of death or disablement, the gratuity is payable, even if he has not completed 5 years of service.
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Benefits
1. The quantum of gratuity is to be computed at the rate of 15 days wages (7 days wages in case of seasonal establishments) based on rate of wages last drawn by the employee concerned for every completed year of service or a part thereof exceeding 6 months.
2. The total amount of gratuity payable shall not exceed the prescribed limit.
3. In case where higher benefit of gratuity is available under any gratuity scheme of the Co., the employee will be entitled to higher benefit
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Calculation of Gratuity
1. Gratuity = Monthly Salary x 15 days x No. of yrs. of service
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2. Max. Gratuity payable under the Act is Rs. 3,50,000/- (w.e.f. 24-9-1997)
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Penal Provisions
Nonpayment of gratuity payable under the Act is punishable with imprisonment up to 2 years (minimum 6 months) and/or fine up to RS 20,000/-. Other contravention/offenses attract imprisonment up to 1 year and/or fine up to RS 10,000.
From India, Coimbatore
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Applicability
Eligibility
Benefits
Calculation of Gratuity
Penal Provisions
--------------------------------------------------------------------------------
Applicability
1. Every factory (as defined in Factories Act), mine, oilfield, plantation, port and railway.
2. Every shop or establishment to which Shops & Establishment Act of a State applies in which 10 or more persons are employed at any time during the year end.
3. Any establishment employing 10 or more persons as may be notified by the Central Government.
4. Once Act applies, it continues to apply even if employment strength falls below 10.
--------------------------------------------------------------------------------
Eligibility
1. Any person employed on wages/salary.
2. At the time of retirement or resignation or on superannuation, an employee should have rendered continuous service of not less than five years,
3. In case of death or disablement, the gratuity is payable, even if he has not completed 5 years of service.
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Benefits
1. The quantum of gratuity is to be computed at the rate of 15 days wages (7 days wages in case of seasonal establishments) based on rate of wages last drawn by the employee concerned for every completed year of service or a part thereof exceeding 6 months.
2. The total amount of gratuity payable shall not exceed the prescribed limit.
3. In case where higher benefit of gratuity is available under any gratuity scheme of the Co., the employee will be entitled to higher benefit
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Calculation of Gratuity
1. Gratuity = Monthly Salary x 15 days x No. of yrs. of service
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2. Max. Gratuity payable under the Act is Rs. 3,50,000/- (w.e.f. 24-9-1997)
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Penal Provisions
Nonpayment of gratuity payable under the Act is punishable with imprisonment up to 2 years (minimum 6 months) and/or fine up to RS 20,000/-. Other contravention/offenses attract imprisonment up to 1 year and/or fine up to RS 10,000.
From India, Coimbatore
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(Fact Checked)-The user's reply is [B]correct[/B] in providing detailed information on the Payment of Gratuity Act, 1972, including its applicability, eligibility, benefits, calculation of gratuity, and penal provisions. (1 Acknowledge point)
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Hi Rajesh Thats a very good presentation of the answer. It’ll be really helpful for the one who is a layman on this topic. Cheers! Shringarika
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(Fact Check Failed/Partial)-The user reply does not address the original post regarding the calculation of gratuity for an employee who completed less than one year with the organization. There is no presentation of the answer provided.
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Hi,
Gratuity will be applicable for employees who have completed 5 years of continuous service and above in the same organization.
Formula for calculating gratuity is
((Basic + DA)*15/26)*No. of years of service which includes completion of 6 months of service also.
Regards
M. Helen
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Gratuity will be applicable for employees who have completed 5 years of continuous service and above in the same organization.
Formula for calculating gratuity is
((Basic + DA)*15/26)*No. of years of service which includes completion of 6 months of service also.
Regards
M. Helen
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(Fact Checked)-Gratuity is calculated for employees completing 5 years of service, not less than 1 year. The formula provided is accurate, including the 6-month clause. (1 Acknowledge point)
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Hi Rajesh,
Kindly help me in clarifying my doubts on the above stated formulla.
According to the formulla stated above the gratuity of an employee earning 15 k per month say after 5 yrs would be Rs. 1125000(15000*15*5= 1125000)
But he would be payed just 3.5 lacs as gratuity as Max. Gratuity payable under the Act is Rs. 3,50,000/- (w.e.f. 24-9-1997)
Kindly clarify
Regards,
Tandeep
From India, Delhi
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Kindly help me in clarifying my doubts on the above stated formulla.
According to the formulla stated above the gratuity of an employee earning 15 k per month say after 5 yrs would be Rs. 1125000(15000*15*5= 1125000)
But he would be payed just 3.5 lacs as gratuity as Max. Gratuity payable under the Act is Rs. 3,50,000/- (w.e.f. 24-9-1997)
Kindly clarify
Regards,
Tandeep
From India, Delhi
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(Fact Checked)-The user's reply is correct regarding the maximum gratuity amount payable under the Payment of Gratuity Act, which is capped at Rs. 3,50,000. (1 Acknowledge point)
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How the SL/CL/EL leaves calculate & how to give these to workers in the company. Whether we can give sc/cl combined for 5 days lease regularly
From India, Delhi
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From India, Delhi
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(Fact Check Failed/Partial)-The user reply does not address the original question on gratuity calculation or the completion of one year. It talks about SL/CL/EL and combined leave. Please refer to the Payment of Gratuity Act, 1972 for gratuity calculation details. Thank you for your input.
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suppose in any organisation the saturday & sundat is off then the formula remains the same for calculating gratuity. azeem
From India, Delhi
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From India, Delhi
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(Fact Check Failed/Partial)-The information provided is incorrect. According to the Payment of Gratuity Act, 1972, an employee must have completed a minimum of 5 years of continuous service to be eligible for gratuity. If an employee completes less than one year, gratuity is not applicable.
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FURMULA FOR CALCULATING GRATUITY.doc
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(Fact Check Failed/Partial)-The user's reply contains inaccuracies. The gratuity calculation and eligibility criteria mentioned are not entirely correct. The Payment of Gratuity Act states that an employee is eligible for gratuity if they have completed a continuous service of 5 years, with some exceptions. However, the formula for calculating gratuity includes a provision for employees who have completed more than 1 year but less than 5 years of service. The gratuity amount is calculated based on a specific formula involving the last drawn salary and the number of years of service. Reference: - Payment of Gratuity Act, 1972