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How 2 Calculate Gratutity...!
Type: HR, Report if not a HR topic
Posted 18-10-2008Reply
As per the Gratuity Act. he is eligible to get the gratuity amount only after the completion of 5yrs of continous service in the organisation, but if the employee completed 4yrs 4 month and 17 Days and he is leaving the company,Is he eligible for gratuity?
How will we calculate the amount??
Formula for gratuity calculation:
Basic*15/26* no. of years
e.g. : Basic = Rs. 10,000/-
No. of years = 15 years
Gratuity = 10,000*15/26*5
= Rs. 28,846.15/-
Hi Praveen,
Thnx for your valuable comments..but as far as my knowledge is concern Gratutity Act says that a person is eligible for Gratutity after completion of 5 years of this tenure in the same organisation. Secondly it can be calculated in two ways.
Gratututy (Year) 1= Basic/26*15 or
2= Basic*4.81%*12
Gratututy (5 Year) = Basic/26*15*5 or Basic*4.81%*12*5
Thnx for your valuable comments..but as far as my knowledge is concern Gratutity Act says that a person is eligible for Gratutity after completion of 5 years of this tenure in the same organisation. Secondly it can be calculated in two ways.
Gratututy (Year) 1= Basic/26*15 or
2= Basic*4.81%*12
Gratututy (5 Year) = Basic/26*15*5 or Basic*4.81%*12*5
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