An employee joined in a shop (Under Delhi Shop Act) on 01 May 1999.
The total number of employees were 6 then the number increased to 10 on 01 Jan 2006.
His present salary structure is Basic-33000, HRA - 18000, CCA - 7000, Conv - 2800 (Total 60800/-).
How much would be his gratuity eligibility if he leave the shop on 31st May 2014?
Thanking you for expert adv..
From India, Delhi
The total number of employees were 6 then the number increased to 10 on 01 Jan 2006.
His present salary structure is Basic-33000, HRA - 18000, CCA - 7000, Conv - 2800 (Total 60800/-).
How much would be his gratuity eligibility if he leave the shop on 31st May 2014?
Thanking you for expert adv..
From India, Delhi
Date of leaving :- 31/05/2014 date of joining:- 01/05/1999 working period:- 15 years and 30 days. Gratuity:- basic+da*15/26*no. Of years services 33000*15/26*15= 285570 gratuity amount 285570 rs.
From India, Faridabad
121From India, Faridabad
Dear Soman,
In reference to your query,I wish to mentioned to clarify that it does not matter as to when the Paymeny of Gratuity Acr,1972 has been made applicable to the establishment.The important factor is that on the day when you have plan to reliquish your post/service, the Act has the applicability and the establishment is covered under the Act.The following Section are relevent in your case:-
(i)
An employee joined in a shop (Under Delhi Shop Act) on 01 May 1999.
The total number of employees were 6 then the number increased to 10 on 01 Jan 2006.
His present salary structure is Basic-33000, HRA - 18000, CCA - 7000, Conv - 2800 (Total 60800/-).
How much would be his gratuity eligibility if he leave the shop on 31st May 2014?
ixzz32W0uIIIJFormula Used : Gratuity Calculation In India = [ (Basic Pay + D.A) x 15 days x No. of years of service ] / 26 Where, D.A = Dearness Allowance.
From India, Mumbai
In reference to your query,I wish to mentioned to clarify that it does not matter as to when the Paymeny of Gratuity Acr,1972 has been made applicable to the establishment.The important factor is that on the day when you have plan to reliquish your post/service, the Act has the applicability and the establishment is covered under the Act.The following Section are relevent in your case:-
(i)
An employee joined in a shop (Under Delhi Shop Act) on 01 May 1999.
The total number of employees were 6 then the number increased to 10 on 01 Jan 2006.
His present salary structure is Basic-33000, HRA - 18000, CCA - 7000, Conv - 2800 (Total 60800/-).
How much would be his gratuity eligibility if he leave the shop on 31st May 2014?
ixzz32W0uIIIJFormula Used : Gratuity Calculation In India = [ (Basic Pay + D.A) x 15 days x No. of years of service ] / 26 Where, D.A = Dearness Allowance.
From India, Mumbai
Dear Soman,
I am sorry I was in process of contributing to the thread and meanwhile by mistake the incomplete mail has been posted on the thread.Please find below the complete thread.
In reference to your query,I wish to clarify that it does not matter as to when the Payment of Gratuity Act,1972 was made applicable to your establisment rather more important is that the Act has its applicatation on the day when you have decided to leave. In your case the following are the Section or Rules which has its applicapabilty:-
Section 2(s)- "wages" means all emoluments which are earned by an employee while on duty or on leave in accordance with the terms and conditions of his employment and which are paid or are payable to him in cash and includes dearness allowance but does not include any bonus, commission, house rent allowance, overtime wages and any other allowance.
Setion 3(b)-The Act applicable to every shop or establishment within the meaning of any law for the time being in force in relation to shops and establishments in a State, in which ten or more persons are employed, or were employed, on any day of the preceding twelve months.
Section 4(1) (b)-Gratuity shall be payable to an employee on the termination of his employment after he has rendered continuous service for not less than five years (b) on his retirement or resignation.
Section 4(2)- For every completed year of service or part thereof in excess of six months, the employer shall pay gratuity to an employee at the rate of fifteen days' wages based on the rate of wages last drawn by the employee concerned :
The formula for the calculation of gratuity shall be as under :-
[Basic Pay + D.A) x 15 days x No. of years of service ] / 26 Where, D.A = Dearness Allowance.
Since you joined you establishment on 01 May 1999 and have decided to leave on 31st May, 2014 as such you have completed 15 years and one month.Thus you shall be entitled to Rs285577/-- by apply the formula of [33000/-+ 00) x 15 days x15 years] / 26.
BS Kalsi
Member since Aug 2011
From India, Mumbai
I am sorry I was in process of contributing to the thread and meanwhile by mistake the incomplete mail has been posted on the thread.Please find below the complete thread.
In reference to your query,I wish to clarify that it does not matter as to when the Payment of Gratuity Act,1972 was made applicable to your establisment rather more important is that the Act has its applicatation on the day when you have decided to leave. In your case the following are the Section or Rules which has its applicapabilty:-
Section 2(s)- "wages" means all emoluments which are earned by an employee while on duty or on leave in accordance with the terms and conditions of his employment and which are paid or are payable to him in cash and includes dearness allowance but does not include any bonus, commission, house rent allowance, overtime wages and any other allowance.
Setion 3(b)-The Act applicable to every shop or establishment within the meaning of any law for the time being in force in relation to shops and establishments in a State, in which ten or more persons are employed, or were employed, on any day of the preceding twelve months.
Section 4(1) (b)-Gratuity shall be payable to an employee on the termination of his employment after he has rendered continuous service for not less than five years (b) on his retirement or resignation.
Section 4(2)- For every completed year of service or part thereof in excess of six months, the employer shall pay gratuity to an employee at the rate of fifteen days' wages based on the rate of wages last drawn by the employee concerned :
The formula for the calculation of gratuity shall be as under :-
[Basic Pay + D.A) x 15 days x No. of years of service ] / 26 Where, D.A = Dearness Allowance.
Since you joined you establishment on 01 May 1999 and have decided to leave on 31st May, 2014 as such you have completed 15 years and one month.Thus you shall be entitled to Rs285577/-- by apply the formula of [33000/-+ 00) x 15 days x15 years] / 26.
BS Kalsi
Member since Aug 2011
From India, Mumbai
Warm Gretings!!!!!!
Dear Mr.soman,
Please find the below link. I hope It will be useful to calculate the Gratuity.
Gratuity Calculation India
Regards,
Muthu
Senior HR Executive
From India, Chennai
Dear Mr.soman,
Please find the below link. I hope It will be useful to calculate the Gratuity.
Gratuity Calculation India
Regards,
Muthu
Senior HR Executive
From India, Chennai
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Gratuity Act-Teachers-Ma dhya Pradesh.docx
Payment of Gratuity Act, 1972 & The Rules.ppt