abt graguity

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Subhas Parida (Querist)

20 January 2011 I have a query abt gragutity,my office college is working for last 5 years for the company,he wants to claim gragity,he says that as per govt.rule , after completion of 5 year in a company ,employee should get the benefit of graguity,what is the amount or calculation of graguity,pls solve my problem
thanx
subas

CMA. Subhash Kumar Jha

CMA. Subhash Kumar Jha (Expert)

20 January 2011 1st of all its "GRATUITY" !

After 5 years, the employee is eligible for the gratuity. But, he can claim it only after retirement or leaving the job.

CMA. Subhash Kumar Jha

CMA. Subhash Kumar Jha (Expert)

20 January 2011 Calculation :

15 days salary (Basic) for each completed year of service or part in excess of 6 months.

When calculating the 15 days salary the gross days for month to be taken as 26.

so the formula is :

(Last drawn basic salary) X 15/26 X (No. of completed year of service or part in excess of 6 months.)

Subhas Parida

Subhas Parida (Querist)

20 January 2011 hi Subhash Ji,the employee's ctc-23000/-,basic =10000/-pm,no of year working=7 yrs,what is the amount of graguity,he will get

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