dear all,
would u please assist me with reference to gratuity - that is paid after five years continued service to employees and it is calculated like this:
last availed salary*tenure period*15 days/26 days.
on other hand while taking the CTC we have Gratuity as 4.81% on Basic Salary.
now my confusion starts from here - when to take gratuity into account, after five years or on monthly basis. or whether this monthly calculation comes after 5 years?
please help me ,.......
thanks,
From India, Indore
would u please assist me with reference to gratuity - that is paid after five years continued service to employees and it is calculated like this:
last availed salary*tenure period*15 days/26 days.
on other hand while taking the CTC we have Gratuity as 4.81% on Basic Salary.
now my confusion starts from here - when to take gratuity into account, after five years or on monthly basis. or whether this monthly calculation comes after 5 years?
please help me ,.......
thanks,
From India, Indore
Dear Devendra,
Your gratuity will be paid to you only if you continue with the company for 5years.This is a reward given to you for your loyality.
Therfore you can only take out your gratuity in case if you are leaving the company after serving it for 5 years.
Regards
MK
From India, Delhi
1Your gratuity will be paid to you only if you continue with the company for 5years.This is a reward given to you for your loyality.
Therfore you can only take out your gratuity in case if you are leaving the company after serving it for 5 years.
Regards
MK
From India, Delhi
Mr devendra gratuity to be paid to the employee after completion of 5 years and the monthly calculation comes after 5 years and calculated with present salary ( after 5 years)
From India, Solon
From India, Solon
Gratuity forms part of your CTC, and is paid to the employees on this resignation after completing 5 years od service.
Gratuity is paid as per the formular below.
Your SALARY (Basic salary + DA) last drawn
Gratuity is paid @ 15 days salary for each complete year of service.
15 days salary is calculated as SALARY/26*15
Gratuity paid is SALARY/26*15*years of service. (period of service > 6 months is rounded to 1 year) ie 6 years 7 months is 7 years
I hiope this is now clear
From India, Pune
Gratuity is paid as per the formular below.
Your SALARY (Basic salary + DA) last drawn
Gratuity is paid @ 15 days salary for each complete year of service.
15 days salary is calculated as SALARY/26*15
Gratuity paid is SALARY/26*15*years of service. (period of service > 6 months is rounded to 1 year) ie 6 years 7 months is 7 years
I hiope this is now clear
From India, Pune
Dear Devendra,
As gratuity is a liability of the company, for adding into the books of account, many companies are booking them on monthly basis at 4.81% of the basics.
But, however the employees are eligible to claim them on their completion of five years of services at the time of their separation.
If somebody left the services before the stipulated time of 5 years, the amount booked are reversed.
Hope it is clear..
S.Sethupathy,
Excellent HR Services,
Erode.
From India, Selam
As gratuity is a liability of the company, for adding into the books of account, many companies are booking them on monthly basis at 4.81% of the basics.
But, however the employees are eligible to claim them on their completion of five years of services at the time of their separation.
If somebody left the services before the stipulated time of 5 years, the amount booked are reversed.
Hope it is clear..
S.Sethupathy,
Excellent HR Services,
Erode.
From India, Selam
Subject - CTC designing & calculations of CTC Dear all, I want to know about how CTC is designed? What is the method to calculate of CTC. Thanks & Regards, Aditya
From India, Delhi
From India, Delhi
Dear Devendra , I am agree with Mr.S.Sethupathy,Gratuity is eligible after complete 5 of service. With regards, Sameer K Ghosh
From India, Daman
From India, Daman
dear all I want to know the basis how and why 4.81% is taken as gratuity in CTC. Is this provided in any law. RLDhingra
From India, Delhi
From India, Delhi
Dear Dhingra,
I am adding the file by which I used to explain the finer points of Gratuity act and calculation method to my client's accounts team.
I hope you may get a clear picture out of it.
S.Sethupathy,
Excellent HR Services,
Erode.
From India, Selam
I am adding the file by which I used to explain the finer points of Gratuity act and calculation method to my client's accounts team.
I hope you may get a clear picture out of it.
S.Sethupathy,
Excellent HR Services,
Erode.
From India, Selam
Dear Mr.Dhingra
4.81% of the basic plus dearness allowance is the gratuity liability of the employer every month. The quantum of gratuity is obtained by the following formula as provided under the Payment of Gratuity Act
(Basic + Dearness Allowance) /26 x 15 x Number of years of service. This is the liability at the end of service of the employee. The employer would like to assess his gratuity liability every month for so many different purposes and reasons. Therefore based on this formula the monthly gratuity liability to the employer per Rs.100 is calculated as follows:
Rs.100/26 x 15/12 = Rs4.807 if you calculate using a scientific calculator and if it is rounded off it becomes Rs,4.81 per hundred rupees. [Here the division by 12 is done to assess the monthly liability as 15 days wages is for one year(12 months) service].
If this amount is expressed as a percentage it is 4.81%.
From India, Madras
4.81% of the basic plus dearness allowance is the gratuity liability of the employer every month. The quantum of gratuity is obtained by the following formula as provided under the Payment of Gratuity Act
(Basic + Dearness Allowance) /26 x 15 x Number of years of service. This is the liability at the end of service of the employee. The employer would like to assess his gratuity liability every month for so many different purposes and reasons. Therefore based on this formula the monthly gratuity liability to the employer per Rs.100 is calculated as follows:
Rs.100/26 x 15/12 = Rs4.807 if you calculate using a scientific calculator and if it is rounded off it becomes Rs,4.81 per hundred rupees. [Here the division by 12 is done to assess the monthly liability as 15 days wages is for one year(12 months) service].
If this amount is expressed as a percentage it is 4.81%.
From India, Madras
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Payment of Gratuity Act, 1972 & The Rules.ppt
THE PAYMENT OF GRATUITY ACT 1972.doc