Gratuity calculation gratuity = current basic x 15 x complete year of service / 26 = 8500 x 15 x 5 /26 = 24519.00 if you left the job on 18.8.11 than you will receive rs.24519.00.
From India, New Delhi
2From India, New Delhi
You will received half month salary of each completed year. For this salary means average salary (basic salary+dearness allowance)of last six months.
From India, Amritsar
From India, Amritsar
What does 4.81% mean. Based on this the calculation is not correct. Your detail answer of Last drawn basic+DA/26*15*no.of years of service is correct. Pl explain the right method
From India, Panaji
From India, Panaji
Your Gratuity amount will be : Last basic salary x 15/26 x 5 (yrs) in case you leave the organisation immediately after completing 5 yrs.
From India, Mumbai
From India, Mumbai
1. Gratuity is calculated on last basic salary drawn. (17000) ;
2. For each year completed, you will get 15 days basic ;
3. One year's gratuity is calculated by dividing basic by 26 days (not 30 days) and then multiplying the result by 15 days. (17000/26=654*15=9808);
4. Multiply the result by no of years service.(9808 * 5 = 49038);
Your gratuity will be : Rs.49,038/- .
Hope this will suffice.
Sudhakaran
From India, Bangalore
2. For each year completed, you will get 15 days basic ;
3. One year's gratuity is calculated by dividing basic by 26 days (not 30 days) and then multiplying the result by 15 days. (17000/26=654*15=9808);
4. Multiply the result by no of years service.(9808 * 5 = 49038);
Your gratuity will be : Rs.49,038/- .
Hope this will suffice.
Sudhakaran
From India, Bangalore
Then 5 years ok , if we work for 10 years , same process. Last basic salary x 15/26 x 10 (yrs) pls let me know regards riyaz.
From India, Bangalore
From India, Bangalore
Dear Riyaz Ji
Gratuity is payable @ last pay drawn which also includes dearness allowance, dearness pay if any but not other allowances such as HRA, medical allowance, transport allowance etc. The formula is as under:
Last pay*No.of year of service*15/26
For no.of year of service, please remember that any portion over and above six months is to be rounded off to the next full year. Example: Qualifying service 5 years, six months = 6 years.
Qualifying service 6 years, four months and 26 days = 6 years
From India, Pune
Gratuity is payable @ last pay drawn which also includes dearness allowance, dearness pay if any but not other allowances such as HRA, medical allowance, transport allowance etc. The formula is as under:
Last pay*No.of year of service*15/26
For no.of year of service, please remember that any portion over and above six months is to be rounded off to the next full year. Example: Qualifying service 5 years, six months = 6 years.
Qualifying service 6 years, four months and 26 days = 6 years
From India, Pune
According to the gratuity act 1972, the payment of the gratuity is payable by an multiplier decided by Govt. of India in India.
The calculation is, (Basic+DA) X (15/26) X (no of years of service), the Basic will be calculated from the last drawn salary only.
thanks
From India, Delhi
The calculation is, (Basic+DA) X (15/26) X (no of years of service), the Basic will be calculated from the last drawn salary only.
thanks
From India, Delhi
Explanation for 4.81%
Employers calculate their commitment of Gratuity in respect of each employee:-
It will be 15/26 of their salary (Basic+DA) yearly. Or it will be 15/26/12 of the monthly salary, which in per centage terms is 4.8076%(4.81% when adjusted to two decimal places).Most professionally managed companies set apart every month 4.81% of the salary of each employee to meet the liability under the Gratuity Act. Since 1987 comanies have got to take compulsory insurance under Sec 4A from LIC to meet the liability.And large companies have their own approved Gratuity funds in this connection.
And 4.81% of the salary is shown in the monthly CTC by some companies.
By the way the formula given by Mr.Saravanan is not correct.
Sanu Soman
From India, Madras
Employers calculate their commitment of Gratuity in respect of each employee:-
It will be 15/26 of their salary (Basic+DA) yearly. Or it will be 15/26/12 of the monthly salary, which in per centage terms is 4.8076%(4.81% when adjusted to two decimal places).Most professionally managed companies set apart every month 4.81% of the salary of each employee to meet the liability under the Gratuity Act. Since 1987 comanies have got to take compulsory insurance under Sec 4A from LIC to meet the liability.And large companies have their own approved Gratuity funds in this connection.
And 4.81% of the salary is shown in the monthly CTC by some companies.
By the way the formula given by Mr.Saravanan is not correct.
Sanu Soman
From India, Madras
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