Dear Ashish and all responders,
As Mr Madan Mohan Praj says, it is such a horrible status of HR function. After seeing the questions and responses, I too felt so. Please find below my clear inputs on Gratuity. Hope this will put an end to basic question on Gratuity.
1. Gratuity is payable on completion of 5 years of service
2. Service counts from the day one the person is taken on regular employment which includes probationary period (training should not be confused for probation - Training is such an engagement by a company wherein the person is given an offer letter as Trainee and that will be for a fixed period or may be extended after completion of that fixed period.)
3. Gratuity formula is - basic + DA x no.of years of service x 15 / 26 wherein 15 is the 15 days basic + DA payable for every completed year of service
4. While calculating gratuity, service of 6 months and more to be treated as one year
5. Payment of Gratuity is done within one month after leaving the company in case of resignations, VRS, etc., and in case of retirement, it is a normal practice in organisations to pay it on the last day when the person retires.
6. Gratuity cannot be withheld unless there is any damage to the property or such reasons which the management should be able to convince the Gratuity Authority in case it becomes an issue
7. Late payments will attract 15%(latest amendments, if any to be checked) interest pa and the elgible person will be at liberty to take it to the Gratuity authority in case managements do not comply
K.Ramachandra
Manager-Admin & HR
Tokai Rubber Auto-Parts - Bangalore
8As Mr Madan Mohan Praj says, it is such a horrible status of HR function. After seeing the questions and responses, I too felt so. Please find below my clear inputs on Gratuity. Hope this will put an end to basic question on Gratuity.
1. Gratuity is payable on completion of 5 years of service
2. Service counts from the day one the person is taken on regular employment which includes probationary period (training should not be confused for probation - Training is such an engagement by a company wherein the person is given an offer letter as Trainee and that will be for a fixed period or may be extended after completion of that fixed period.)
3. Gratuity formula is - basic + DA x no.of years of service x 15 / 26 wherein 15 is the 15 days basic + DA payable for every completed year of service
4. While calculating gratuity, service of 6 months and more to be treated as one year
5. Payment of Gratuity is done within one month after leaving the company in case of resignations, VRS, etc., and in case of retirement, it is a normal practice in organisations to pay it on the last day when the person retires.
6. Gratuity cannot be withheld unless there is any damage to the property or such reasons which the management should be able to convince the Gratuity Authority in case it becomes an issue
7. Late payments will attract 15%(latest amendments, if any to be checked) interest pa and the elgible person will be at liberty to take it to the Gratuity authority in case managements do not comply
K.Ramachandra
Manager-Admin & HR
Tokai Rubber Auto-Parts - Bangalore
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SALARY SHEET CALCULATION.xls