Gratuity calculation

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

12 June 2014 Dear Sir
Please correct me if the formula is incorrect. I have calculated for gratuity for one of the employee resigned from the service, his total no.of years of work is 7 years. Now the company will be payable gratuity to him.

Basic salary * 15 * No.of Years of service / 26

Its an urgent. Please reply

Thanks in Advance

Guest

Guest (Expert)

12 June 2014 yes u are right

basic salary/ 26 * 15 *7

Message likes : 1 times

Querist : Anonymous

Querist : Anonymous (Querist)

12 June 2014
Thank you Sir

.

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Guest

Guest (Expert)

12 June 2014 your welcome dear friend....................Good luck Dost

Querist : Anonymous

Querist : Anonymous (Querist)

12 June 2014 Sir One more thing

The total years of service is 7.4 Years(7 years and 4 months).
So how can I taken this 7 years OR 8 years of service.

Thanks

Vishnu Saboo

Vishnu Saboo (Expert)
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12 June 2014 if months are more than 6, then only you can take 8 year, else 7 years will be count.
also one more thing to be noted, you have divided by 26, this is only when ur co is registered under gratuity act.

Querist : Anonymous

Querist : Anonymous (Querist)

12 June 2014 Thanks Mr.Arun Saboo
If our Co.is not registered under gratuity Act. Then how to calculate instead 26?

Thanks

Vishnu Saboo

Vishnu Saboo (Expert)
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12 June 2014 it must be divided by 30, and fraction are not allowed. i.e. if service period in 7 year and 7 month, still gratuity for 7 years to be paid and not for 8 years.

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Querist : Anonymous

Querist : Anonymous (Querist)

12 June 2014 Thank you Mr.Arun Saboo

Vishnu Saboo

Vishnu Saboo (Expert)
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12 June 2014 welcome dear, pleasure to help u.