URGENT - Gratuity Payment Clarification
This query is : Resolved
02 April 2011
Hi,
I joined BACS on 21st January 2008 and my last working day was 7th Mar 2011. The company used to deduct 4.81% of Basic each year and show it in the CTC. My query is what amount of Gratuity I should have received - as per the company's calculation or the basic formula?
Below are the clarifications I received from my company relating to Gratuity payment. I would like to know if the company's calculations are correct or should the payment be made as per formula Basic*15*(number of years)/26. Please advise. URGENT
Ø Please be informed that for legacy BACS associates who are on the roles of the company as on 31st March 2009, Ex-gratia (TaxableGratuity) is paid if the associate leaves organization in less than 4 years 240 days.
Ex-gratia is calculated as follows –
4.81% on their accumulated Basic from the Date of Joining till your Last Working Day.
Ø The calculation of Basic*15/26*no of years is as per the Provisions of the Gratuity Act who completes 4 years 240 days of service with the company. Since your hire date is 21st January 2008 you will not be eligible for Gratuity Payment
Thanks,
Vineet
I joined BACS on 21st January 2008 and my last working day was 7th Mar 2011. The company used to deduct 4.81% of Basic each year and show it in the CTC. My query is what amount of Gratuity I should have received - as per the company's calculation or the basic formula?
Below are the clarifications I received from my company relating to Gratuity payment. I would like to know if the company's calculations are correct or should the payment be made as per formula Basic*15*(number of years)/26. Please advise. URGENT
Ø Please be informed that for legacy BACS associates who are on the roles of the company as on 31st March 2009, Ex-gratia (TaxableGratuity) is paid if the associate leaves organization in less than 4 years 240 days.
Ex-gratia is calculated as follows –
4.81% on their accumulated Basic from the Date of Joining till your Last Working Day.
Ø The calculation of Basic*15/26*no of years is as per the Provisions of the Gratuity Act who completes 4 years 240 days of service with the company. Since your hire date is 21st January 2008 you will not be eligible for Gratuity Payment
Thanks,
Vineet
02 April 2011
For gratuity payment, one should complete 5 yr of continue service.
27 March 2013
Dear All
To claim gratuity as a right one should complete 4yrs and 200days of continuous service with the same employer not in the group.
the calculation for gratuity is as follows
your basic + DA divided by 26daysX15daysXno of yrs service:
e.g.
Assuming that if your last drawn salary is 52000/- Per month.
52000/50%=26,000/- is your basic pay.
26000/26=1000x26=26000xno of yrs of service
To claim gratuity as a right one should complete 4yrs and 200days of continuous service with the same employer not in the group.
the calculation for gratuity is as follows
your basic + DA divided by 26daysX15daysXno of yrs service:
e.g.
Assuming that if your last drawn salary is 52000/- Per month.
52000/50%=26,000/- is your basic pay.
26000/26=1000x26=26000xno of yrs of service
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